Futu Holdings Limited (FUTU)
Valuation Overview•Is Futu Holdings Limited Overvalued or Undervalued?
Trading at a discount across both intrinsic cash flow and relative peer multiples, indicating a strong margin of safety.
High-quality fundamentals with a strong composite quality score of 89/100, backed by robust profitability and solvency.
Analysts remain bullish, forecasting further upside expansion with consensus targets suggesting solid gains.
Verdict: Elite compounder with fortress-level fundamentals across every core pillar.
Wall Street is highly bullish, projecting significant upside alongside robust expected earnings growth. This is paired with healthy capital returns, anchored by a strong, well-covered dividend yield.
FUTU exhibits elite business quality, driven by exceptional capital efficiency and highly lucrative margins (highlighted by a massive 22.3% ROIC). This is backed by a fortress balance sheet, holding significant net cash ($106.2B) and minimal debt risk.
The company maintains stable top-line performance paired with highly explosive earnings growth (58.0% EPS 3Y CAGR). This growth is supported by elite operational efficiency, sustaining an impressive 55.8% operating margin.
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $5.3B | +67.8% | — | — | — | |
| EBITDA | $3.3B | — | +54.2% | — | — | |
| Net Income | $2.6B | +107.9% | +57.0% | — | — | |
| EPS (Diluted) | $18.32 | +106.0% | +58.0% | +51.4% | — | |
| Free Cash Flow | $0.00 | +32.1% | +129.2% | +14.8% | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 84.2% | 84.6% | 84.7% | 75.9% |
| Operating Margin | 55.8% | 53.5% | 50.4% | 21.5% |
| Net Margin | 44.3% | 44.2% | 42.1% | 16.7% |
| FCF Margin | — | 113.8% | 93.9% | 400.3% |
| Quarter | EPS Est. | EPS Act. | Surprise | EPS | Rev |
|---|---|---|---|---|---|
| Q2'26Latest | $2.89 | $0.77 | -73.4% | ||
| Q1'26 | $2.88 | $3.07 | +6.6% | ||
| Q4'25 | $3.06 | $2.93 | -4.2% | ||
| Q3'25 | $2.13 | $2.32 | +8.9% | ||
| Q2'25 | $1.79 | $1.96 | +9.5% | ||
| Q1'25 | $1.55 | $1.72 | +11.0% | ||
| Q4'24 | $1.27 | $1.21 | -4.7% | ||
| Q3'24 | $1.03 | $1.11 | +7.8% |
Total return is -18.8% (1Y), lagging the benchmark by -43.8%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | -44.4% | -53.7% | — |
| 1Y | -18.8% | -43.8% | +2.1% |
| 3YCAGR | +36.9% | +17.3% | +11.5% |
| 5YCAGR | -8.1% | -20.4% | +2.9% |
| 10YCAGR | +20.8% | +7.1% | — |
The S&P 500 is at 31.3x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about Futu Holdings Limited (FUTU) valuation, health, and returns.
Futu Holdings Limited is estimated to be undervalued under our discounted cash flow framework. relative multiples indicate the stock is Cheap versus peers compared to industry peers. undervalued (implying +59.5% upside to DCF intrinsic value of $154.14)
Futu Holdings Limited has multiple valuation anchors: DCF Intrinsic Value: $154.14 | Peer Relative Fair Value: $1372.00 | Wall Street Analyst Target: $165.88 (implying +71.6% upside). A convergence of these signals offers higher conviction.
Futu Holdings Limited displays excellent financial health with a composite quality score of 89/100, supported by a Piotroski F-Score of 7/9, Return on Invested Capital (ROIC) of 22.3%.
Futu Holdings Limited pays a 2.0% dividend yield, covered by a 19% payout ratio with 0 years of growth, supplemented by a 0.0% buyback yield.
Futu Holdings Limited's current growth trajectory is Accelerating. The company achieved +67.8% 1Y revenue growth and +106.0% 1Y EPS growth, compared to its 3Y revenue CAGR of N/A.
Wall Street consensus is Buy based on 12 analysts, beating EPS expectations in 58% of recent quarters with a -1-quarter streak. The consensus price target represents a +71.6% change from current levels.
Investment risks for Futu Holdings Limited include: -54.9% 1-year max drawdown, high beta (2.14x market volatility). Volatility risk is characterized by a beta of 2.14x.
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.