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LPL Financial Holdings Inc LPLA Stock Quote

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Morningstar‘s Stock Analysis LPLA

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Is it the right time to buy or sell?

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Increasing Our FVE for LPL Financial to $256; Significant Operating Margin Expansion Ahead

Michael Wong, CFA, CPA Sector Director

Analyst Note

| Michael Wong, CFA, CPA |

We are increasing our fair value estimate for narrow-moat LPL Financial to $256 from $221 per share. Our fair value estimate correlates to a price/forward earnings multiple of 14.5 times and an enterprise value/EBITDA multiple of 10 times. Of the net $35 increase in our fair value estimate, $22 is from increasing cash-related revenue, primarily from the company's plan to move excess client cash that is currently in money market funds into higher revenue-yielding client cash accounts. Of the remaining $13 increase, $9 is from other revenue adjustments and $4 is from increasing operating margins.

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Key Statistics LPLA

Company Profile LPLA

Business Description

LPL Financial Holdings is an independent broker/dealer that provides a platform of proprietary technology, brokerage, and investment advisory services to financial advisors and institutions. As of the end of 2021, the company had nearly 20,000 advisors on its platform managing over $1 trillion of client assets.

4707 Executive Drive
San Diego, CA, 92121
T +1 800 877-7210
Industry Capital Markets
Most Recent Earnings Jun 30, 2022
Fiscal Year End Dec 31, 2022
Employees 6,099