Freedom Holding Corp. (FRHC)
Valuation Overview•Is Freedom Holding Corp. Overvalued or Undervalued?
Priced at a premium to peer multiples and intrinsic cash flows, demanding strong execution to justify current levels.
Moderate quality score of 59/100, reflecting stable operating margins and manageable leverage.
Wall Street forecasts a balanced outlook with consensus price targets near the current price.
Verdict: Average quality business weighed down by significant solvency concerns.
Wall Street is broadly bullish, projecting solid upside alongside robust expected earnings growth. The company currently retains all capital for reinvestment and growth rather than returning it to shareholders.
FRHC demonstrates strong business quality with robust profitability and healthy margins. However, the balance sheet carries elevated leverage, requiring careful monitoring of debt servicing capabilities.
The company maintains stable top-line performance however, earnings have severely contracted over the same period. This growth is supported by elite operational efficiency, sustaining an impressive 30.6% operating margin.
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $466.7M | +7.8% | — | — | — | |
| EBITDA | $163.1M | — | +18.8% | — | — | |
| Net Income | $8.0M | +81.1% | -9.2% | — | — | |
| EPS (Diluted) | $0.13 | +79.3% | -10.1% | -0.4% | — | |
| Free Cash Flow | -$1.5B | -102.4% | +66.2% | — | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 58.1% | 65.0% | 67.9% | 76.0% |
| Operating Margin | 30.6% | 39.9% | 47.9% | 42.3% |
| Net Margin | 7.2% | 11.3% | 18.5% | 23.9% |
| FCF Margin | 2.6% | 3.1% | -35.0% | 13.4% |
| Quarter | EPS Est. | EPS Act. | Surprise | EPS | Rev |
|---|---|---|---|---|---|
| Q2'26Latest | $0.87 | $0.13 | -85.1% | ||
| Q1'26 | $0.87 | $1.25 | +43.7% | ||
| Q4'25 | — | $0.63 | — | ||
| Q3'25 | — | $0.50 | — | ||
| Q2'25 | — | $-2.36 | — | ||
| Q1'25 | — | $1.32 | — | ||
| Q4'24 | — | $1.89 | — | ||
| Q3'24 | — | $0.57 | — |
Total return is -6.7% (1Y), lagging the benchmark by -27.5%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | +9.0% | +1.7% | — |
| 1Y | -6.7% | -27.5% | — |
| 3YCAGR | +18.0% | +1.5% | — |
| 5YCAGR | +16.4% | +6.3% | — |
| 10YCAGR | +52.9% | +39.6% | — |
The S&P 500 is at 30.6x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about Freedom Holding Corp. (FRHC) valuation, health, and returns.
Freedom Holding Corp. is estimated to be overvalued under our discounted cash flow framework. relative multiples indicate the stock is Expensive versus peers compared to industry peers. overvalued (implying -71.0% downside from DCF intrinsic value of $41.64)
Freedom Holding Corp. has multiple valuation anchors: DCF Intrinsic Value: $41.64 | Peer Relative Fair Value: $62.83 | Wall Street Analyst Target: $138.00 (implying +7.1% upside). A convergence of these signals offers higher conviction.
Freedom Holding Corp. displays fair financial health with a composite quality score of 59/100, supported by a Altman Z-Score of 0.9 (distress zone), Piotroski F-Score of 7/9, Return on Invested Capital (ROIC) of 15.3%.
Freedom Holding Corp. does not return material capital to shareholders via dividends or share repurchases, electing to retain earnings to fund internal growth.
Freedom Holding Corp.'s current growth trajectory is Accelerating. The company achieved +7.8% 1Y revenue growth and +79.3% 1Y EPS growth, compared to its 3Y revenue CAGR of N/A.
Wall Street consensus is Hold based on 0 analysts, beating EPS expectations in 50% of recent quarters with a -1-quarter streak. The consensus price target represents a +7.1% change from current levels.
Investment risks for Freedom Holding Corp. include: -41.1% 1-year max drawdown, elevated distress risk. Volatility risk is characterized by a beta of 1.08x.
No. These computations are purely quantitative model outputs for informational purposes. They do not account for qualitative management shifts or macro events. Always consult a licensed RIA before buying or selling shares.
Disclaimer: This page is for informational purposes only and does not constitute financial advice. All valuation models, scores, and target estimates are automated computations under stated assumptions and should not be relied upon as the sole basis for any investment decision.