Robinhood Markets, Inc. (HOOD) Stock Analysis — Fair Value, Risk & Moat Rating
NMS · Financial Services · Capital Markets
Is Robinhood Markets, Inc. a safe investment right now?
Robinhood Markets, Inc. is in the Financial Services sector — Altman Z-Score does not apply to this type of company. Our fair value estimate is $101.40 (Buy Zone).
Why the Altman Z-Score does not apply to Robinhood Markets, 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 Robinhood Markets, Inc. actually worth?
How we calculated this
| Input | Value | Source |
|---|---|---|
| Analyst Consensus Target | $101.40 | 24 Wall Street analysts |
| Analyst High / Low | $155.00 / $50.00 | Range of analyst price targets |
| Price / Book | 8.72x | Current market valuation vs book value |
| Return on Equity | 22.0% | 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 Robinhood Markets, 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 Robinhood Markets, Inc.'s dividend safe?
Robinhood Markets, Inc.'s key financial metrics
| Metric | Latest | 1Y Ago | 3Y Ago | Trend |
|---|---|---|---|---|
| Revenue | $4.5B | $3.0B | $1.4B | Rising |
| Net Income | $1.9B | $1.4B | −$1.0B | Rising |
| Free Cash Flow | $1.6B | −$0.2B | −$0.9B | Rising |
| Gross Margin | 83.3% | 79.4% | 56.7% | Rising |
Recent events that affect our HOOD analysis
HOOD earnings report scheduled
Upcoming report. Consensus EPS estimate: $0.43. Revenue estimate: $1.14B. Our current Fair Value: $101.40 — a significant beat or miss could shift this estimate.
HOOD analyst consensus: 70% bullish (19 of 27 analysts)
4 Strong Buy, 15 Buy, 5 Hold, 3 Sell, 0 Strong Sell. Consensus target: $101.40 (14.7% upside). Compare with our independent Fair Value: $101.40.
HOOD 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 →
HOOD 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 →
HOOD beat EPS estimates by 3.8%
Reported EPS: $0.66 vs estimate $0.64. Earnings strength supports our Fair Value of $101.40 (14.7% above current price).
HOOD 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 →
HOOD 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 →
HOOD filed quarterly report (10-Q)
Quarterly update with interim financials. May signal changes to earnings trajectory and balance sheet health. View on SEC EDGAR →
HOOD beat EPS estimates by 12.1%
Reported EPS: $0.61 vs estimate $0.54. Earnings strength supports our Fair Value of $101.40 (14.7% above current price).
HOOD 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 →
HOOD 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 →
HOOD filed quarterly report (10-Q)
Quarterly update with interim financials. May signal changes to earnings trajectory and balance sheet health. View on SEC EDGAR →
HOOD beat EPS estimates by 36.0%
Reported EPS: $0.42 vs estimate $0.31. Earnings strength supports our Fair Value of $101.40 (14.7% above current price).
HOOD 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 →
HOOD 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 →
HOOD filed quarterly report (10-Q)
Quarterly update with interim financials. May signal changes to earnings trajectory and balance sheet health. View on SEC EDGAR →
HOOD beat EPS estimates by 13.5%
Reported EPS: $0.37 vs estimate $0.33. Earnings strength supports our Fair Value of $101.40 (14.7% above current price).
HOOD 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 →
HOOD 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 →
HOOD 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 →
HOOD beat EPS estimates by 126.5%
Reported EPS: $1.01 vs estimate $0.45. Earnings strength supports our Fair Value of $101.40 (14.7% above current price).
HOOD 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 →
HOOD 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 Robinhood Markets, Inc.
What is Robinhood Markets, Inc. stock price today?
Robinhood Markets, Inc. (HOOD) stock price is $88.43 as of the latest market close, traded on the NASDAQ exchange.
What does Robinhood Markets, Inc. do?
Robinhood Markets, Inc. operates financial services platform in the United States. The company's platform allows users to invest in stocks, exchange-traded funds (ETFs), and American depository receipts.
What is Robinhood Markets, Inc. market cap?
Robinhood Markets, Inc. has a market capitalization of $79.61B, classifying it as a large-cap stock in the Financial Services sector.
What sector and industry is HOOD in?
Robinhood Markets, Inc. operates in the Financial Services sector, specifically within the Capital Markets industry. It trades on the NASDAQ under the ticker symbol HOOD.
Is HOOD stock overvalued or undervalued?
Based on our valuation model, Robinhood Markets, Inc. trades 12.8% below our fair value estimate — potentially undervalued.
- FairValueLabs Fair Value: $101.40
- Current Price: $88.43
- Valuation Zone: Buy Zone
What is HOOD stock forecast and analyst target price?
Based on 24 Wall Street analysts, the consensus price target for Robinhood Markets, Inc. is $101.40, implying upside of 14.7% from the current price.
- Analyst High Target: $155.00
- Analyst Low Target: $50.00
Note: Analyst targets are shown for reference and are not used in our valuation model.
Is Robinhood Markets, Inc. revenue and earnings growing?
Here are the analyst consensus growth estimates for Robinhood Markets, Inc.:
- Revenue growth (current year est.): 16.5%
- EPS growth (current year est.): 0.7%
- Revenue growth (next year est.): 18.1%
- EPS growth (next year est.): 26.2%
What are Robinhood Markets, Inc.'s key financial metrics?
| Metric | Latest | Trend |
|---|---|---|
| Revenue | $4.5B | Rising |
| Net Income | $1.9B | Rising |
| Free Cash Flow | $1.6B | Rising |
| Gross Margin | 83.3% | Rising |
What is HOOD's P/E ratio?
The price-to-earnings ratio measures how much investors pay per dollar of earnings:
- Trailing P/E (last 12 months): 43.1x
- Forward P/E (next 12 months est.): 32.8x
How volatile is HOOD stock?
Robinhood Markets, Inc. has a beta of 2.46, meaning it is significantly more 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 Robinhood Markets, Inc. have?
Robinhood Markets, Inc.'s balance sheet shows:
- Total Cash: $12.65B
- Total Debt: $12.45B
- Net Cash Position: $197.0M
A positive net cash position means the company holds more cash than debt, reducing financial risk.
Does Robinhood Markets, Inc. pay a dividend?
Robinhood Markets, Inc. does not currently pay a regular dividend to shareholders. The company may be reinvesting all profits back into growth, or it may have suspended its dividend.
Is Robinhood Markets, Inc. financially healthy?
The Altman Z-Score — the standard bankruptcy prediction model — is not applicable to Financial Services companies like Robinhood Markets, Inc.. The formula uses ratios designed for manufacturing firms that produce misleading results for banks, utilities, and REITs.
Does Robinhood Markets, 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 HOOD's return on equity (ROE)?
Robinhood Markets, Inc.'s return on equity is 22.0%. 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 HOOD stock?
HOOD 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 HOOD
- 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 HOOD a value stock or speculative?
FairValueLabs classifies Robinhood Markets, Inc. as Value-Speculation. It has some value characteristics but carries elevated risk factors that make it speculative. Extra due diligence is recommended.
Who is the CEO of Robinhood Markets, Inc.?
The current CEO of Robinhood Markets, Inc. is Mr. Vladimir Tenev.
What is HOOD's earnings per share (EPS)?
Earnings per share measures the company's profit allocated to each outstanding share:
- Trailing EPS (last 12 months): $2.05
- Forward EPS (next 12 months est.): $2.69
- Analyst consensus EPS (this year): $2.06
- Analyst consensus EPS (next year): $2.60
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.
HOOD analysis methodology: How we calculate fair value, Z-Scores, and moat ratings