LPL Financial Holdings Inc. (LPLA) Stock Analysis — Fair Value, Risk & Moat Rating
NMS · Financial Services · Capital Markets
Is LPL Financial Holdings Inc. a safe investment right now?
LPL Financial Holdings Inc. is in the Financial Services sector — Altman Z-Score does not apply to this type of company. Our fair value estimate is $405.14 (Strong Buy Zone).
Why the Altman Z-Score does not apply to LPL Financial Holdings Inc.
The Altman Z-Score is designed for manufacturing and non-financial companies. It uses ratios like Working Capital / Total Assets and Revenue / Total Assets that produce misleading results for Financial Services companies.
- Banks hold massive assets (loans) that inflate Total Assets, making WC/TA nearly zero — a false distress signal
- Utilities carry high regulated debt by design — the model misreads leverage as risk
- REITs use Funds From Operations (FFO), not Free Cash Flow — standard cash flow analysis doesn't apply
Altman Z-Score is designed for manufacturing companies and does not apply to banks, utilities, or REITs.
Note: A sector-specific financial health model for Financial Services companies is planned for a future update.
What is LPL Financial Holdings Inc. actually worth?
How we calculated this
| Input | Value | Source |
|---|---|---|
| Analyst Consensus Target | $405.14 | 14 Wall Street analysts |
| Analyst High / Low | $540.00 / $330.00 | Range of analyst price targets |
| Price / Book | 4.91x | Current market valuation vs book value |
| Return on Equity | 20.9% | Profitability relative to shareholder equity |
Source: Earnings data from SEC EDGAR filings. Market data via Yahoo Finance.
Why standard moat analysis does not apply to LPL Financial Holdings Inc.
Our standard moat model uses ROIC stability, gross margin trends, and switching costs — metrics designed for product and service companies. Financial Services companies compete on fundamentally different dimensions.
- Banks — moat comes from deposit cost advantage, net interest margin stability, and fee income diversification
- Utilities — moat is a regulatory monopoly with guaranteed rate of return on invested capital
- REITs — moat comes from property portfolio quality, location, tenant mix, and cap rate advantages
Standard moat analysis (ROIC/gross margin/switching costs) does not reliably apply to Financial Services companies. Banks compete on net interest margin, utilities on regulated returns, and REITs on occupancy and cap rates.
Note: A sector-specific competitive analysis for Financial Services companies is planned for a future update.
Is LPL Financial Holdings Inc.'s dividend safe?
Can LPL Financial Holdings Inc. afford its dividend?
Payout ratio is 11.0%. FCF covers the dividend 20.5x. 15 consecutive years of payments.
LPL Financial Holdings Inc.'s key financial metrics
| Metric | Latest | 1Y Ago | 3Y Ago | Trend |
|---|---|---|---|---|
| Revenue | $17.0B | $12.4B | $8.6B | Rising |
| Net Income | $0.9B | $1.1B | $0.8B | Stable |
| Free Cash Flow | −$1.0B | −$0.3B | $1.6B | Declining |
| Gross Margin | 23.7% | 27.2% | 27.6% | Declining |
Recent events that affect our LPLA analysis
LPLA earnings report scheduled
Upcoming report. Consensus EPS estimate: $5.47. Revenue estimate: $5.00B. Our current Fair Value: $405.14 — a significant beat or miss could shift this estimate.
LPLA analyst consensus: 81% bullish (13 of 16 analysts)
6 Strong Buy, 7 Buy, 3 Hold, 0 Sell, 0 Strong Sell. Consensus target: $405.14 (23.6% upside). Compare with our independent Fair Value: $405.14.
LPLA paid $0.3000/share dividend
Dividend Safety Grade: A. Payout ratio: 11.0%.
LPLA filed annual report (10-K)
Annual filing with full-year financials. Our Altman Z-Score, Moat, and Fair Value models are derived from this data. View on SEC EDGAR →
LPLA beat EPS estimates by 6.8%
Reported EPS: $5.23 vs estimate $4.90. Earnings strength supports our Fair Value of $405.14 (23.6% above current price).
LPLA filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
LPLA filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
LPLA paid $0.3000/share dividend
Dividend Safety Grade: A. Payout ratio: 11.0%.
LPLA filed quarterly report (10-Q)
Quarterly update with interim financials. May signal changes to earnings trajectory and balance sheet health. View on SEC EDGAR →
LPLA beat EPS estimates by 15.8%
Reported EPS: $5.20 vs estimate $4.49. Earnings strength supports our Fair Value of $405.14 (23.6% above current price).
LPLA filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
LPLA paid $0.3000/share dividend
Dividend Safety Grade: A. Payout ratio: 11.0%.
LPLA filed quarterly report (10-Q)
Quarterly update with interim financials. May signal changes to earnings trajectory and balance sheet health. View on SEC EDGAR →
LPLA filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
LPLA beat EPS estimates by 7.1%
Reported EPS: $4.51 vs estimate $4.21. Earnings strength supports our Fair Value of $405.14 (23.6% above current price).
LPLA filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
LPLA filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
LPLA filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
LPLA paid $0.3000/share dividend
Dividend Safety Grade: A. Payout ratio: 11.0%.
LPLA filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
LPLA filed quarterly report (10-Q)
Quarterly update with interim financials. May signal changes to earnings trajectory and balance sheet health. View on SEC EDGAR →
LPLA beat EPS estimates by 11.0%
Reported EPS: $5.15 vs estimate $4.64. Earnings strength supports our Fair Value of $405.14 (23.6% above current price).
LPLA filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
LPLA filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
LPLA filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
LPLA filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
LPLA paid $0.3000/share dividend
Dividend Safety Grade: A. Payout ratio: 11.0%.
LPLA filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
LPLA filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
LPLA filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
LPLA filed annual report (10-K)
Annual filing with full-year financials. Our Altman Z-Score, Moat, and Fair Value models are derived from this data. View on SEC EDGAR →
LPLA beat EPS estimates by 7.4%
Reported EPS: $4.25 vs estimate $3.96. Earnings strength supports our Fair Value of $405.14 (23.6% above current price).
LPLA filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
Common questions about LPL Financial Holdings Inc.
What is LPL Financial Holdings Inc. stock price today?
LPL Financial Holdings Inc. (LPLA) stock price is $327.78 as of the latest market close, traded on the NASDAQ exchange.
What does LPL Financial Holdings Inc. do?
LPL Financial Holdings Inc., together with its subsidiaries, provides an integrated platform of brokerage and investment advisory services to independent financial advisors and financial advisors at institutions in the United States. The company's brokerage offerings include variable and fixed annuities, mutual funds, equities, fixed income, alternative investments, retirement and 529 education savings plans, and insurance; and client cash programs consist of Federal Deposit Insurance Corporation (FDIC) insured bank sweep vehicles, and a client cash and money market account. It also provides fee-based platforms that provide access to mutual funds, exchange traded funds, stocks, bonds, certain options strategies, unit investment trusts, institutional money managers, and no-load multi-manager variable annuities.
What is LPL Financial Holdings Inc. market cap?
LPL Financial Holdings Inc. has a market capitalization of $26.28B, classifying it as a large-cap stock in the Financial Services sector.
What sector and industry is LPLA in?
LPL Financial Holdings Inc. operates in the Financial Services sector, specifically within the Capital Markets industry. It trades on the NASDAQ under the ticker symbol LPLA.
Is LPLA stock overvalued or undervalued?
Based on our valuation model, LPL Financial Holdings Inc. trades 19.1% below our fair value estimate — potentially undervalued.
- FairValueLabs Fair Value: $405.14
- Current Price: $327.78
- Valuation Zone: Strong Buy Zone
What is LPLA stock forecast and analyst target price?
Based on 14 Wall Street analysts, the consensus price target for LPL Financial Holdings Inc. is $405.14, implying upside of 23.6% from the current price.
- Analyst High Target: $540.00
- Analyst Low Target: $330.00
Note: Analyst targets are shown for reference and are not used in our valuation model.
Is LPL Financial Holdings Inc. revenue and earnings growing?
Here are the analyst consensus growth estimates for LPL Financial Holdings Inc.:
- Revenue growth (current year est.): 21.8%
- EPS growth (current year est.): 13.7%
- Revenue growth (next year est.): 11.1%
- EPS growth (next year est.): 23.7%
What are LPL Financial Holdings Inc.'s key financial metrics?
| Metric | Latest | Trend |
|---|---|---|
| Revenue | $17.0B | Rising |
| Net Income | $0.9B | Stable |
| Free Cash Flow | −$1.0B | Declining |
| Gross Margin | 23.7% | Declining |
What is LPLA's P/E ratio?
The price-to-earnings ratio measures how much investors pay per dollar of earnings:
- Trailing P/E (last 12 months): 30.0x
- Forward P/E (next 12 months est.): 11.6x
How volatile is LPLA stock?
LPL Financial Holdings Inc. has a beta of 0.57, meaning it is less volatile than the broader market. A beta above 1.0 indicates higher price swings relative to the S&P 500, while below 1.0 suggests more stability.
How much cash and debt does LPL Financial Holdings Inc. have?
LPL Financial Holdings Inc.'s balance sheet shows:
- Total Cash: $2.87B
- Total Debt: $7.57B
- Net Cash Position: $-4.71B
A positive net cash position means the company holds more cash than debt, reducing financial risk.
Does LPL Financial Holdings Inc. pay a dividend, and is it safe?
Yes, LPL Financial Holdings Inc. pays a regular dividend. Here are the key metrics:
- Dividend Yield: 0.4%
- Payout Ratio: 11.0%
- Consecutive Years Paid: 15
- 5-Year Dividend Growth: -21.4%
- FairValueLabs Safety Grade: A
Is LPL Financial Holdings Inc. financially healthy?
The Altman Z-Score — the standard bankruptcy prediction model — is not applicable to Financial Services companies like LPL Financial Holdings Inc.. The formula uses ratios designed for manufacturing firms that produce misleading results for banks, utilities, and REITs.
Does LPL Financial Holdings Inc. have a competitive moat?
Our standard moat model (based on ROIC, gross margins, and switching costs) does not apply to Financial Services companies. These firms compete on fundamentally different dimensions such as regulatory advantages, deposit cost structures, or property portfolios.
What is LPLA's return on equity (ROE)?
LPL Financial Holdings Inc.'s return on equity is 20.9%. ROE measures how efficiently a company generates profits from shareholder equity. An ROE above 15% is generally considered strong, while below 10% may signal inefficiency.
How do I buy LPLA stock?
LPLA shares can be purchased through any brokerage account that provides access to the NASDAQ. Common steps:
- Open an account with a broker (e.g., Fidelity, Schwab, Interactive Brokers)
- Search for ticker symbol LPLA
- Place a market or limit order for your desired number of shares
This is not investment advice. Always do your own research before buying any stock.
Is LPLA a value stock or speculative?
FairValueLabs classifies LPL Financial Holdings Inc. as Value Investment. It exhibits consistent profitability, reasonable valuation, and financial stability — characteristics of a traditional value investment.
Who is the CEO of LPL Financial Holdings Inc.?
The current CEO of LPL Financial Holdings Inc. is Mr. Richard Steinmeier.
What is LPLA's earnings per share (EPS)?
Earnings per share measures the company's profit allocated to each outstanding share:
- Trailing EPS (last 12 months): $10.91
- Forward EPS (next 12 months est.): $28.26
- Analyst consensus EPS (this year): $22.85
- Analyst consensus EPS (next year): $28.26
Other Financial Services companies analyzed by FairValueLabs
FairValueLabs Disclaimer
All valuations, scores, ratings, and classifications on this page are produced by the FairValueLabs internal valuation system. They do not represent actual market value, guaranteed outcomes, or professional investment advice. These are analytical estimates for educational and research purposes only.
This is not financial advice. All data is sourced from SEC EDGAR public filings. Always consult a qualified financial advisor before making investment decisions.
Last updated: Apr 22, 2026. Data sources: SEC EDGAR (financial statements), Yahoo Finance (market data, analyst consensus). Data may not reflect the most recent quarter.
LPLA analysis methodology: How we calculate fair value, Z-Scores, and moat ratings