The Charles Schwab Corporation (SCHW) Stock Analysis — Fair Value, Risk & Moat Rating
NYQ · Financial Services · Capital Markets
Is The Charles Schwab Corporation a safe investment right now?
The Charles Schwab Corporation is in the Financial Services sector — Altman Z-Score does not apply to this type of company. Our fair value estimate is $115.00 (Strong Buy Zone).
Why the Altman Z-Score does not apply to The Charles Schwab Corporation
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 The Charles Schwab Corporation actually worth?
How we calculated this
| Input | Value | Source |
|---|---|---|
| Analyst Consensus Target | $115.00 | 20 Wall Street analysts |
| Analyst High / Low | $131.00 / $92.00 | Range of analyst price targets |
| Price / Book | 3.25x | Current market valuation vs book value |
| Return on Equity | 19.1% | 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 The Charles Schwab Corporation
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 The Charles Schwab Corporation's dividend safe?
Can The Charles Schwab Corporation afford its dividend?
Payout ratio is 22.5%. FCF covers the dividend 0.5x. 38 consecutive years of payments.
The Charles Schwab Corporation's key financial metrics
| Metric | Latest | 1Y Ago | 3Y Ago | Trend |
|---|---|---|---|---|
| Revenue | $23.9B | $19.6B | $20.8B | Rising |
| Net Income | $8.9B | $5.9B | $7.2B | Rising |
| Free Cash Flow | $8.8B | $2.0B | $1.1B | Rising |
Recent events that affect our SCHW analysis
SCHW earnings report scheduled
Upcoming report. Consensus EPS estimate: $1.47. Revenue estimate: $6.58B. Our current Fair Value: $115.00 — a significant beat or miss could shift this estimate.
SCHW analyst consensus: 86% bullish (19 of 22 analysts)
8 Strong Buy, 11 Buy, 2 Hold, 0 Sell, 1 Strong Sell. Consensus target: $115.00 (25.4% upside). Compare with our independent Fair Value: $115.00.
SCHW 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 →
SCHW beat EPS estimates by 2.5%
Reported EPS: $1.43 vs estimate $1.40. Earnings strength supports our Fair Value of $115.00 (25.4% above current price).
SCHW 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 →
SCHW 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 →
SCHW 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 →
SCHW paid $0.3200/share dividend
Dividend Safety Grade: B. Payout ratio: 22.5%.
SCHW 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 →
SCHW missed EPS estimates by 0.3%
Reported EPS: $1.39 vs estimate $1.39. Our Fair Value of $115.00 may face downward pressure if the trend continues.
SCHW 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 →
SCHW 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 →
SCHW paid $0.2700/share dividend
Dividend Safety Grade: B. Payout ratio: 22.5%.
SCHW filed quarterly report (10-Q)
Quarterly update with interim financials. May signal changes to earnings trajectory and balance sheet health. View on SEC EDGAR →
SCHW 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 →
SCHW beat EPS estimates by 5.2%
Reported EPS: $1.31 vs estimate $1.25. Earnings strength supports our Fair Value of $115.00 (25.4% above current price).
SCHW 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 →
SCHW filed quarterly report (10-Q)
Quarterly update with interim financials. May signal changes to earnings trajectory and balance sheet health. View on SEC EDGAR →
SCHW paid $0.2700/share dividend
Dividend Safety Grade: B. Payout ratio: 22.5%.
SCHW beat EPS estimates by 3.8%
Reported EPS: $1.14 vs estimate $1.10. Earnings strength supports our Fair Value of $115.00 (25.4% above current price).
SCHW 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 →
SCHW 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 →
SCHW 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 →
SCHW filed quarterly report (10-Q)
Quarterly update with interim financials. May signal changes to earnings trajectory and balance sheet health. View on SEC EDGAR →
SCHW paid $0.2700/share dividend
Dividend Safety Grade: B. Payout ratio: 22.5%.
SCHW beat EPS estimates by 3.2%
Reported EPS: $1.04 vs estimate $1.01. Earnings strength supports our Fair Value of $115.00 (25.4% above current price).
SCHW 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 →
SCHW 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 →
SCHW 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 →
SCHW paid $0.2700/share dividend
Dividend Safety Grade: B. Payout ratio: 22.5%.
SCHW 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 →
SCHW 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 →
SCHW beat EPS estimates by 10.5%
Reported EPS: $1.01 vs estimate $0.91. Earnings strength supports our Fair Value of $115.00 (25.4% above current price).
SCHW 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 The Charles Schwab Corporation
What is The Charles Schwab Corporation stock price today?
The Charles Schwab Corporation (SCHW) stock price is $91.71 as of the latest market close, traded on the NYSE exchange.
What does The Charles Schwab Corporation do?
The Charles Schwab Corporation, together with its subsidiaries, operates as a savings and loan holding company that provides wealth management, securities brokerage, banking, asset management, custody, and financial advisory services in the United States and internationally. It operates in two segments, Investor Services and Advisor Services. It offers brokerage accounts with equity and fixed income trading, margin lending, options trading, futures and forex trading, and cash management capabilities, including money market funds, and certificates of deposit; third-party mutual funds through the Mutual Fund Marketplace and Mutual Fund OneSource service, as well as mutual fund trading and clearing services to broker-dealers; exchange-traded funds; advisory solutions for managed portfolios, separately managed accounts, customized personal advice for tailored portfolios, specialized planning, and full-time portfolio management; banking products comprising checking and savings accounts, first lien residential real estate mortgage loans, home equity lines of credit, and pledged asset lines; and trust custody services, personal trust reporting services, and administrative trustee services.
What is The Charles Schwab Corporation market cap?
The Charles Schwab Corporation has a market capitalization of $160.70B, classifying it as a large-cap stock in the Financial Services sector.
What sector and industry is SCHW in?
The Charles Schwab Corporation operates in the Financial Services sector, specifically within the Capital Markets industry. It trades on the NYSE under the ticker symbol SCHW.
Is SCHW stock overvalued or undervalued?
Based on our valuation model, The Charles Schwab Corporation trades 20.2% below our fair value estimate — potentially undervalued.
- FairValueLabs Fair Value: $115.00
- Current Price: $91.71
- Valuation Zone: Strong Buy Zone
What is SCHW stock forecast and analyst target price?
Based on 20 Wall Street analysts, the consensus price target for The Charles Schwab Corporation is $115.00, implying upside of 25.4% from the current price.
- Analyst High Target: $131.00
- Analyst Low Target: $92.00
Note: Analyst targets are shown for reference and are not used in our valuation model.
Is The Charles Schwab Corporation revenue and earnings growing?
Here are the analyst consensus growth estimates for The Charles Schwab Corporation:
- Revenue growth (current year est.): 11.5%
- EPS growth (current year est.): 23.6%
- Revenue growth (next year est.): 8.9%
- EPS growth (next year est.): 16.1%
What are The Charles Schwab Corporation's key financial metrics?
| Metric | Latest | Trend |
|---|---|---|
| Revenue | $23.9B | Rising |
| Net Income | $8.9B | Rising |
| Free Cash Flow | $8.8B | Rising |
What is SCHW's P/E ratio?
The price-to-earnings ratio measures how much investors pay per dollar of earnings:
- Trailing P/E (last 12 months): 18.2x
- Forward P/E (next 12 months est.): 13.1x
How volatile is SCHW stock?
The Charles Schwab Corporation has a beta of 0.90, meaning it is roughly in line with overall market volatility. 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 The Charles Schwab Corporation have?
The Charles Schwab Corporation's balance sheet shows:
- Total Cash: $84.80B
- Total Debt: $33.00B
- Net Cash Position: $51.80B
A positive net cash position means the company holds more cash than debt, reducing financial risk.
Does The Charles Schwab Corporation pay a dividend, and is it safe?
Yes, The Charles Schwab Corporation pays a regular dividend. Here are the key metrics:
- Dividend Yield: 1.2%
- Payout Ratio: 22.5%
- Consecutive Years Paid: 38
- 5-Year Dividend Growth: -15.0%
- FairValueLabs Safety Grade: B
Is The Charles Schwab Corporation financially healthy?
The Altman Z-Score — the standard bankruptcy prediction model — is not applicable to Financial Services companies like The Charles Schwab Corporation. The formula uses ratios designed for manufacturing firms that produce misleading results for banks, utilities, and REITs.
Does The Charles Schwab Corporation 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 SCHW's return on equity (ROE)?
The Charles Schwab Corporation's return on equity is 19.1%. 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 SCHW stock?
SCHW shares can be purchased through any brokerage account that provides access to the NYSE. Common steps:
- Open an account with a broker (e.g., Fidelity, Schwab, Interactive Brokers)
- Search for ticker symbol SCHW
- 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 SCHW a value stock or speculative?
FairValueLabs classifies The Charles Schwab Corporation as Value Investment. It exhibits consistent profitability, reasonable valuation, and financial stability — characteristics of a traditional value investment.
Who is the CEO of The Charles Schwab Corporation?
The current CEO of The Charles Schwab Corporation is Mr. Richard Andrew Wurster C.F.A., CMT.
What is SCHW's earnings per share (EPS)?
Earnings per share measures the company's profit allocated to each outstanding share:
- Trailing EPS (last 12 months): $5.03
- Forward EPS (next 12 months est.): $6.99
- Analyst consensus EPS (this year): $6.02
- Analyst consensus EPS (next year): $6.99
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.
SCHW analysis methodology: How we calculate fair value, Z-Scores, and moat ratings