Using the industry peer median P/E multiple (trailing + forward), Robinhood Markets, Inc. (HOOD) has a fair value of $35.53 based on 4 comparable companies in the Financial - Capital Markets industry.
USD in millions except Fair Price. Subject company highlighted.
| Mkt Cap ($M) | Trailing P/E | Forward P/E | |
|---|---|---|---|
| Robinhood Markets, Inc.HOOD | 64,443 | 34.2x | 30.1x |
| Morgan StanleyMS | 260,679 | 16.1x | 16.6x |
| The Goldman Sachs Group, Inc.GS | 247,147 | 16.1x | 16.9x |
| The Charles Schwab CorporationSCHW | 167,903 | 20.3x | 16.1x |
| Raymond James Financial, Inc.RJF | 28,655 | 14.1x | 14.0x |
| Industry Median | 16.1x | 16.3x | |
| (*) Profit after tax | 1,883 | 2,143 | |
| Equity Value | 30,271 | 35,026 | |
| (/) Outstanding shares | 919 | 919 | |
| Fair Price | $33 | $38 | |
This P/E relative valuation uses the industry peer median Price-to-Earnings ratio to estimate fair value. Both trailing (last 12 months) and forward (next fiscal year analyst estimates) P/E multiples are computed independently.
The industry median trailing P/E is applied to the company's TTM net income, and the forward P/E to analyst-estimated net income. Each produces an equity value divided by shares outstanding to yield a fair price per share. The selected fair value is the average of the trailing and forward legs.