Piper Sandler Companies

PIPR

Financial ServicesFinancial - Capital MarketsNYSE

$80.40

Market Cap: $5.71B

Piper Sandler Companies (PIPR) Valuation Summary

Updated Apr 6, 2026 22:28

Model	Range	Fair Value	Upside
▸ Discounted Cash Flow
Growth Exit 5Y	$85.45 – $350.56	$135.64	+73.8%
Growth Exit 10Y	$82.97 – $306.70	$126.05	+61.5%
EBITDA Exit 5Y	$73.19 – $150.28	$108.51	+39.0%
EBITDA Exit 10Y	$75.92 – $151.92	$108.38	+38.9%
▸ Trading Multiples
P/E	$39.88 – $82.96	$63.73	-18.3%
EV/EBITDA	$48.06 – $80.46	$62.06	-20.5%
EV/Revenue	$42.11 – $197.82	$104.87	+34.4%
▸ PEG
PEG Fair Value	$120.56 – $120.56	$120.56	+54.5%
▸ Earnings Power Value
Earnings Power Value	$65.39 – $99.10	$78.79	+1.0%
▸ Dividend Discount
Dividend Discount	$33.47 – $98.20	$52.05	-33.3%

Valuation History

DCF Analysis

Fair Value

$135.64

Market Price

$80.40

Upside / Downside

+68.7%

Verdict

Undervalued

Using an unlevered Free Cash Flow to Firm (FCFF) model, we project Piper Sandler Companies's cash flows over 5 years with line-by-line expense modeling. Revenue is projected revenue growing from 10.7% to -1.0% annually, with expenses (COGS, SG&A, R&D) held at historical ratios. Depreciation is computed from a vintage matrix based on a 5-year useful life. Working capital is modeled using historical turnover days (DSO 71, DPO 260, DIO 60). At a 7.3% WACC with mid-year discounting, the terminal value (82% of enterprise value) is derived from the Gordon Growth Model on Year 6 FCFF at a 2.5% perpetual rate. After subtracting net debt, the equity value implies a fair price of $135.64 per share, suggesting PIPR is undervalued by 68.7% at the current price of $80.40.

FCFF Present Value Calculation

WACC

7.32%

3% – 20%

Terminal Growth

2.50%

0% – 6%

Forecast Period

5 Yrs

+ Terminal Year

Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.

Currency: USD Millions

	2026	2027	2028	2029	2030	Terminal
Profit Before Tax	584	660	689	682	675	692
(−) Net Interest	11	13	13	13	13	13
(+) D&A	22	24	24	29	33	34
EBITDA	617	697	727	724	721	739

(−) Tax	138	157	163	162	160	164
(−) CapEx	29	33	34	34	34	34
(−) ΔWC	390	51	19	-5	-5	-5
Free Cash Flow (FCFF)	60	456	510	533	532	545

Terminal Value						11,317
WACC / Discount Rate	7.3%
Long-term Growth Rate	2.5%

Timing of FCF (mid year)	0.5	1.5	2.5	3.5	4.5	5
Present Value of FCF	58	411	427	417	387	7,950

Enterprise Value	9,649
Projection Period	1,699	17.6%
Terminal Value	7,950	82.4%

(−) Current Net Debt	0

Equity Value	9,649
(/) Outstanding Shares	71

Fair Price	$135.64

Sensitivity Analysis

WACC \ Terminal Growth Rate	1.5%	2.0%	2.5%	3.0%	3.5%
5.3%	$180	$203	$235	$280	$351
6.3%	$142	$155	$172	$195	$225
7.3%	$116	$125	$136	$149	$165
8.3%	$99	$105	$112	$120	$130
9.3%	$85	$90	$95	$100	$107

Current price: $80.40. Green = undervalued, Red = overvalued.

Fair Value

$126.05

Market Price

$80.40

Upside / Downside

+56.8%

Verdict

Undervalued

Using an unlevered Free Cash Flow to Firm (FCFF) model, we project Piper Sandler Companies's cash flows over 10 years with analyst estimates for the first 3–5 years, fading toward long-term GDP growth for the remaining years with line-by-line expense modeling. Revenue is projected revenue growing from 10.7% to 2.3% annually, with expenses (COGS, SG&A, R&D) held at historical ratios. Depreciation is computed from a vintage matrix based on a 5-year useful life. Working capital is modeled using historical turnover days (DSO 71, DPO 260, DIO 60). At a 7.3% WACC with mid-year discounting, the terminal value (64% of enterprise value) is derived from the Gordon Growth Model on Year 11 FCFF at a 2.5% perpetual rate. After subtracting net debt, the equity value implies a fair price of $126.05 per share, suggesting PIPR is undervalued by 56.8% at the current price of $80.40.

FCFF Present Value Calculation

WACC

7.32%

3% – 20%

Terminal Growth

2.50%

0% – 6%

Forecast Period

5 Yrs

+ Terminal Year

Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.

Currency: USD Millions

	2026	2027	2028	2029	2030	2031	2032	2033	2034	2035	Terminal
Profit Before Tax	584	660	689	682	675	673	675	682	693	710	727
(−) Net Interest	11	13	13	13	13	13	13	13	13	14	14
(+) D&A	22	24	24	29	33	33	34	34	34	34	35
EBITDA	617	697	727	724	721	719	722	729	740	757	776

(−) Tax	138	157	163	162	160	160	160	162	164	168	172
(−) CapEx	29	33	34	34	34	33	34	34	34	35	36
(−) ΔWC	390	51	19	-5	-5	-2	1	5	8	11	11
Free Cash Flow (FCFF)	60	456	510	533	532	527	527	529	534	543	556

Terminal Value											11,543
WACC / Discount Rate	7.3%
Long-term Growth Rate	2.5%

Timing of FCF (mid year)	0.5	1.5	2.5	3.5	4.5	5.5	6.5	7.5	8.5	9.5	5
Present Value of FCF	58	411	427	417	387	357	333	311	293	277	5,696

Enterprise Value	8,967
Projection Period	3,271	36.5%
Terminal Value	5,696	63.5%

(−) Current Net Debt	0

Equity Value	8,967
(/) Outstanding Shares	71

Fair Price	$126.05

Sensitivity Analysis

WACC \ Terminal Growth Rate	1.5%	2.0%	2.5%	3.0%	3.5%
5.3%	$173	$191	$216	$251	$307
6.3%	$136	$146	$159	$176	$199
7.3%	$112	$119	$126	$135	$147
8.3%	$95	$100	$104	$110	$117
9.3%	$83	$86	$89	$93	$97

Current price: $80.40. Green = undervalued, Red = overvalued.

Fair Value

$108.49

Market Price

$80.40

Upside / Downside

+34.9%

Verdict

Undervalued

Using an unlevered Free Cash Flow to Firm (FCFF) model, we project Piper Sandler Companies's cash flows over 5 years with line-by-line expense modeling. Revenue is projected revenue growing from 10.7% to -1.0% annually, with expenses (COGS, SG&A, R&D) held at historical ratios. Depreciation is computed from a vintage matrix based on a 5-year useful life. Working capital is modeled using historical turnover days (DSO 71, DPO 260, DIO 60). At a 7.3% WACC with mid-year discounting, the terminal value (78% of enterprise value) is derived by applying the industry peer median EV/EBITDA multiple of 11.6x to Year 6 EBITDA. After subtracting net debt, the equity value implies a fair price of $108.51 per share, suggesting PIPR is undervalued by 35.0% at the current price of $80.40.

FCFF Present Value Calculation

WACC

7.32%

3% – 20%

EV/EBITDA Exit Multiple

11.59x

1x – 40x

Forecast Period

5 Yrs

+ Terminal Year

Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.

Currency: USD Millions

	2026	2027	2028	2029	2030	Terminal
Profit Before Tax	584	660	689	682	675	692
(−) Net Interest	11	13	13	13	13	13
(+) D&A	22	24	24	29	33	34
EBITDA	617	697	727	724	721	739

(−) Tax	138	157	163	162	160	—
(−) CapEx	29	33	34	34	34	—
(−) ΔWC	390	51	19	-5	-5	—
Free Cash Flow (FCF)	60	456	510	533	532	—

Peers' EBITDA Multiple						11.6x
Terminal Value						8,567
WACC / Discount Rate	7.32%

Timing of FCF (mid year)	0.5	1.5	2.5	3.5	4.5	5
Present Value of FCF	58	411	427	417	387	6,018

Enterprise Value	7,718
Projection Period	1,699	22.0%
Terminal Value	6,018	78.0%

(−) Current Net Debt	0
Equity Value	7,718
(÷) Outstanding Shares	71M
Fair Price	$108	+34.9%

Sensitivity Analysis

WACC \ EV/EBITDA Exit Multiple	7.6x	9.6x	11.6x	13.6x	15.6x
5.3%	$86	$102	$118	$134	$150
6.3%	$83	$98	$113	$129	$144
7.3%	$79	$94	$109	$123	$138
8.3%	$76	$90	$104	$118	$132
9.3%	$73	$87	$100	$113	$126

Current price: $80.40. Green = undervalued, Red = overvalued.

Based on default parameters

Fair Value

$108.36

Market Price

$80.40

Upside / Downside

+34.8%

Verdict

Undervalued

Using an unlevered Free Cash Flow to Firm (FCFF) model, we project Piper Sandler Companies's cash flows over 10 years with analyst estimates for the first 3–5 years, fading toward long-term GDP growth for the remaining years with line-by-line expense modeling. Revenue is projected revenue growing from 10.7% to 2.3% annually, with expenses (COGS, SG&A, R&D) held at historical ratios. Depreciation is computed from a vintage matrix based on a 5-year useful life. Working capital is modeled using historical turnover days (DSO 71, DPO 260, DIO 60). At a 7.3% WACC with mid-year discounting, the terminal value (58% of enterprise value) is derived by applying the industry peer median EV/EBITDA multiple of 11.6x to Year 11 EBITDA. After subtracting net debt, the equity value implies a fair price of $108.38 per share, suggesting PIPR is undervalued by 34.8% at the current price of $80.40.

FCFF Present Value Calculation

WACC

7.32%

3% – 20%

EV/EBITDA Exit Multiple

11.59x

1x – 40x

Forecast Period

5 Yrs

+ Terminal Year

Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.

Currency: USD Millions

	2026	2027	2028	2029	2030	2031	2032	2033	2034	2035	Terminal
Profit Before Tax	584	660	689	682	675	673	675	682	693	710	727
(−) Net Interest	11	13	13	13	13	13	13	13	13	14	14
(+) D&A	22	24	24	29	33	33	34	34	34	34	35
EBITDA	617	697	727	724	721	719	722	729	740	757	776

(−) Tax	138	157	163	162	160	160	160	162	164	168	—
(−) CapEx	29	33	34	34	34	33	34	34	34	35	—
(−) ΔWC	390	51	19	-5	-5	-2	1	5	8	11	—
Free Cash Flow (FCF)	60	456	510	533	532	527	527	529	534	543	—

Peers' EBITDA Multiple											11.6x
Terminal Value											8,993
WACC / Discount Rate	7.32%

Timing of FCF (mid year)	0.5	1.5	2.5	3.5	4.5	5.5	6.5	7.5	8.5	9.5	5
Present Value of FCF	58	411	427	417	387	357	333	311	293	277	4,438

Enterprise Value	7,709
Projection Period	3,271	42.4%
Terminal Value	4,438	57.6%

(−) Current Net Debt	0
Equity Value	7,709
(÷) Outstanding Shares	71M
Fair Price	$108	+34.8%

Sensitivity Analysis

WACC \ EV/EBITDA Exit Multiple	7.6x	9.6x	11.6x	13.6x	15.6x
5.3%	$100	$113	$126	$139	$152
6.3%	$93	$105	$117	$129	$140
7.3%	$87	$98	$108	$119	$130
8.3%	$81	$91	$101	$111	$120
9.3%	$76	$85	$94	$103	$112

Current price: $80.40. Green = undervalued, Red = overvalued.

Based on default parameters

Trading Multiples

Fair Value

$63.73

Market Price

$80.40

Upside / Downside

-20.7%

Verdict

Overvalued

Using the industry peer median P/E Multiples multiple (trailing + forward), Piper Sandler Companies (PIPR) has a fair value of $63.73 based on 8 comparable companies in the Financial - Capital Markets industry.

P/E Valuation — Financial - Capital Markets

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing P/E	Forward P/E
Piper Sandler CompaniesPIPR	5,720	20.3x	27.2x
Virtu Financial, Inc.VIRT	10,036	9.3x	14.4x
StoneX Group Inc.SNEX	6,737	14.5x	25.0x
MarketAxess Holdings Inc.MKTX	6,511	26.3x	21.5x
First American Financial CorporationFAF	6,165	10.1x	38.1x
PennyMac Financial Services, Inc.PFSI	4,715	9.7x	12.6x
Moelis & CompanyMC	4,176	19.2x	20.5x
Lazard LtdLAZ	3,938	19.1x	17.7x
PJT Partners Inc.PJT	3,388	21.0x	20.7x
Industry Median		16.8x	20.6x
(*) Profit after tax		281	210
Equity Value		4,735	4,332
(/) Outstanding shares		71	71
Fair Price		$67	$61

Selected Fair Value (avg of trailing + forward)

$63.73

-20.7%

Fair Value

$71.81

Market Price

$80.40

Upside / Downside

-10.7%

Verdict

Overvalued

Using the industry peer median EV/EBITDA multiple (trailing + forward), Piper Sandler Companies (PIPR) has a fair value of $71.81 based on 9 comparable companies in the Financial - Capital Markets industry.

EV/EBITDA Valuation — Financial - Capital Markets

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing EV/EBITDA	Forward EV/EBITDA
Piper Sandler CompaniesPIPR	5,720	12.2x	15.5x
Virtu Financial, Inc.VIRT	10,036	7.3x	17.1x
StoneX Group Inc.SNEX	6,737	11.9x	—
MarketAxess Holdings Inc.MKTX	6,511	13.9x	12.9x
First American Financial CorporationFAF	6,165	5.6x	6.8x
Hut 8 Corp.HUT	5,498	57.7x	39.5x
PennyMac Financial Services, Inc.PFSI	4,715	18.2x	48.1x
Moelis & CompanyMC	4,176	11.6x	11.7x
Lazard LtdLAZ	3,938	11.2x	12.0x
PJT Partners Inc.PJT	3,388	8.3x	8.3x
Industry Median		11.6x	12.5x
(*) EBITDA		413	325
= Enterprise Value		4,787	4,043
(-) Net Debt		-693	-693
Equity Value		5,480	4,736
(/) Outstanding shares		71	71
Fair Price		$77	$67

Selected Fair Value (avg of trailing + forward)

$71.81

-10.7%

Fair Value

$114.61

Market Price

$80.40

Upside / Downside

+42.5%

Verdict

Undervalued

Using the industry peer median EV/Revenue multiple (trailing + forward), Piper Sandler Companies (PIPR) has a fair value of $114.61 based on 10 comparable companies in the Financial - Capital Markets industry.

EV/Revenue Valuation — Financial - Capital Markets

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing EV/Revenue	Forward EV/Revenue
Piper Sandler CompaniesPIPR	5,720	2.6x	3.4x
Virtu Financial, Inc.VIRT	10,036	2.7x	6.3x
StoneX Group Inc.SNEX	6,737	0.2x	7.0x
TeraWulf Inc.WULF	6,594	50.6x	22.5x
MarketAxess Holdings Inc.MKTX	6,511	7.4x	6.9x
First American Financial CorporationFAF	6,165	0.9x	1.1x
Hut 8 Corp.HUT	5,498	25.0x	17.1x
PennyMac Financial Services, Inc.PFSI	4,715	6.3x	16.7x
Moelis & CompanyMC	4,176	2.6x	2.6x
Lazard LtdLAZ	3,938	1.6x	1.7x
PJT Partners Inc.PJT	3,388	1.9x	1.9x
Industry Median		2.6x	6.6x
(*) Revenue		1,904	1,497
= Enterprise Value		5,029	9,892
(-) Net Debt		-693	-693
Equity Value		5,722	10,585
(/) Outstanding shares		71	71
Fair Price		$80	$149

Selected Fair Value (avg of trailing + forward)

$114.61

+42.5%

PEG Fair Value

Fair Value

$120.56

Market Price

$80.40

Upside / Downside

+50.0%

Verdict

Undervalued

Using the PEG framework with analyst consensus forward EPS growth of 25.0% plus 8.2% dividend yield, the company has a fair value of $120.56 based on NTM EPS (FY2026) of $4.82. The current PEG ratio is 0.55.

PEG Ratio

0.55Deep Value

01.02.03.0+

PEG = P/E ÷ (Growth + Yield) = 16.2 ÷ (21.1% + 8.2%) = 0.55

PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.

Growth Category: Fast GrowerPEG highly applicable

PEG is most informative for high-growth companies — the PEG sweet spot.

Fair Value Calculation

EPS Growth RateForward	21.1%
Dividend Yield	+8.2%
Adjusted Growth (clamped 8–25%)Clamped	25.0%
Fair P/E	25.0x
NTM EPS (FY2026)	$4.82
Fair Value	$120.56

Growth Analysis

Forward GrowthActive

Period	EPS Est.	Growth	Analysts
FY2025 (actual)	$3.96	—	—
FY2026E	$4.82	+21.8%	3
FY2027E	$5.81	+20.4%	3

2Y Forward EPS CAGR: 21.1%

Historical Growth

Year	Net Income	EPS	YoY
FY2021	$278.5M	$4.11	—
FY2022	$110.7M	$1.63	-60.3%
FY2023	$85.5M	$1.24	-23.9%
FY2024	$181.1M	$2.56	+106.5%
FY2025	$281.3M	$3.96	+54.7%

4Y Historical EPS CAGR: -0.9%

Earnings Power Value

Fair Value

$78.79

Market Price

$80.40

Upside / Downside

-2.0%

Verdict

Overvalued

Using the Earnings Power Value framework with a WACC of 7.3% and normalized earnings of $410.2M, the company has a fair value of $78.79 per share. The EPV range is $65.39 – $99.10 based on WACC sensitivity (5.8% – 8.8%).

Currency: USD Millions

	Low	Selected	High
Normalized Earnings	410	410	410
(/) WACC	8.8%	7.3%	5.8%
Enterprise Value	4,652	5,605	7,050
(-) Net debt	0	0	0
Equity Value	4,652	5,605	7,050
(/) Outstanding shares	71	71	71
Fair Price	$65.39	$78.79	$99.10

Dividend Discount Model

Fair Value

$52.05

Market Price

$80.40

Upside / Downside

-35.3%

Verdict

Overvalued

Using the Two-Stage Dividend Discount Model with a Cost of Equity of 7.3% and projected dividend growth of 12.3%, the fair value is $52.05 per share. The DDM range is $33.47 – $98.20 based on sensitivity analysis across Cost of Equity and growth rate assumptions.

Dividend Profile

Current DPS

$1.60

Dividend Yield

8.21%

Payout Ratio

40.6%

Dividend Coverage

2.46x

FCF Payout Ratio16.4%

DPS CAGR (4Y)2.3%

Historical Dividends Per Share

Year	DPS	Payout Ratio	YoY Growth
2025	$1.60	40.6%	+54.0%
2024	$1.04	40.7%	-15.0%
2023	$1.23	98.8%	-22.6%
2022	$1.58	97.2%	+8.2%
2021	$1.46	35.7%	—

Dividend Projections (5-Year)

Year	Projected DPS	Growth	Discount Factor	Present Value
2026	$1.80	12.3%	0.9318	$1.68
2027	$2.02	12.3%	0.8683	$1.76
2028	$2.27	12.3%	0.8091	$1.84
2029	$2.55	12.3%	0.7539	$1.92
2030	$2.87	12.3%	0.7025	$2.01
Terminal Value	$2.94 DPS	2.5%		$42.83

PV of Projected Dividends$9.21

PV of Terminal Value$42.83

Fair Value per Share$52.05

Sensitivity Analysis

Fair value under different Cost of Equity (rows) and DPS Growth Rate (columns) assumptions.

Ke \ Growth	10.3%	11.3%	12.3%	13.3%	14.3%
5.3%	$83	$86	$90	$94	$98
6.3%	$61	$63	$66	$69	$72
7.3%	$48	$50	$52	$54	$57
8.3%	$39	$41	$43	$45	$46
9.3%	$33	$35	$36	$38	$39

Disclaimer: Sweet Value Lab provides estimated intrinsic values for informational purposes only. This is not financial advice. All models rely on assumptions that may not reflect future performance. Always do your own research before making investment decisions.

Piper Sandler Companies (PIPR) Valuation Summary

Updated Apr 6, 2026 22:28

Model	Range	Fair Value	Upside
▸ Discounted Cash Flow
Growth Exit 5Y	$85.45 – $350.56	$135.64	+73.8%
Growth Exit 10Y	$82.97 – $306.70	$126.05	+61.5%
EBITDA Exit 5Y	$73.19 – $150.28	$108.51	+39.0%
EBITDA Exit 10Y	$75.92 – $151.92	$108.38	+38.9%
▸ Trading Multiples
P/E	$39.88 – $82.96	$63.73	-18.3%
EV/EBITDA	$48.06 – $80.46	$62.06	-20.5%
EV/Revenue	$42.11 – $197.82	$104.87	+34.4%
▸ PEG
PEG Fair Value	$120.56 – $120.56	$120.56	+54.5%
▸ Earnings Power Value
Earnings Power Value	$65.39 – $99.10	$78.79	+1.0%
▸ Dividend Discount
Dividend Discount	$33.47 – $98.20	$52.05	-33.3%

Valuation History

DCF Analysis

Fair Value

$135.64

Market Price

$80.40

Upside / Downside

+68.7%

Verdict

Undervalued

FCFF Present Value Calculation

WACC

7.32%

3% – 20%

Terminal Growth

2.50%

0% – 6%

Forecast Period

5 Yrs

+ Terminal Year

Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.

Currency: USD Millions

	2026	2027	2028	2029	2030	Terminal
Profit Before Tax	584	660	689	682	675	692
(−) Net Interest	11	13	13	13	13	13
(+) D&A	22	24	24	29	33	34
EBITDA	617	697	727	724	721	739

(−) Tax	138	157	163	162	160	164
(−) CapEx	29	33	34	34	34	34
(−) ΔWC	390	51	19	-5	-5	-5
Free Cash Flow (FCFF)	60	456	510	533	532	545

Terminal Value						11,317
WACC / Discount Rate	7.3%
Long-term Growth Rate	2.5%

Timing of FCF (mid year)	0.5	1.5	2.5	3.5	4.5	5
Present Value of FCF	58	411	427	417	387	7,950

Enterprise Value	9,649
Projection Period	1,699	17.6%
Terminal Value	7,950	82.4%

(−) Current Net Debt	0

Equity Value	9,649
(/) Outstanding Shares	71

Fair Price	$135.64

Sensitivity Analysis

WACC \ Terminal Growth Rate	1.5%	2.0%	2.5%	3.0%	3.5%
5.3%	$180	$203	$235	$280	$351
6.3%	$142	$155	$172	$195	$225
7.3%	$116	$125	$136	$149	$165
8.3%	$99	$105	$112	$120	$130
9.3%	$85	$90	$95	$100	$107

Current price: $80.40. Green = undervalued, Red = overvalued.

Fair Value

$126.05

Market Price

$80.40

Upside / Downside

+56.8%

Verdict

Undervalued

FCFF Present Value Calculation

WACC

7.32%

3% – 20%

Terminal Growth

2.50%

0% – 6%

Forecast Period

5 Yrs

+ Terminal Year

Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.

Currency: USD Millions

	2026	2027	2028	2029	2030	2031	2032	2033	2034	2035	Terminal
Profit Before Tax	584	660	689	682	675	673	675	682	693	710	727
(−) Net Interest	11	13	13	13	13	13	13	13	13	14	14
(+) D&A	22	24	24	29	33	33	34	34	34	34	35
EBITDA	617	697	727	724	721	719	722	729	740	757	776

(−) Tax	138	157	163	162	160	160	160	162	164	168	172
(−) CapEx	29	33	34	34	34	33	34	34	34	35	36
(−) ΔWC	390	51	19	-5	-5	-2	1	5	8	11	11
Free Cash Flow (FCFF)	60	456	510	533	532	527	527	529	534	543	556

Terminal Value											11,543
WACC / Discount Rate	7.3%
Long-term Growth Rate	2.5%

Timing of FCF (mid year)	0.5	1.5	2.5	3.5	4.5	5.5	6.5	7.5	8.5	9.5	5
Present Value of FCF	58	411	427	417	387	357	333	311	293	277	5,696

Enterprise Value	8,967
Projection Period	3,271	36.5%
Terminal Value	5,696	63.5%

(−) Current Net Debt	0

Equity Value	8,967
(/) Outstanding Shares	71

Fair Price	$126.05

Sensitivity Analysis

WACC \ Terminal Growth Rate	1.5%	2.0%	2.5%	3.0%	3.5%
5.3%	$173	$191	$216	$251	$307
6.3%	$136	$146	$159	$176	$199
7.3%	$112	$119	$126	$135	$147
8.3%	$95	$100	$104	$110	$117
9.3%	$83	$86	$89	$93	$97

Current price: $80.40. Green = undervalued, Red = overvalued.

Fair Value

$108.49

Market Price

$80.40

Upside / Downside

+34.9%

Verdict

Undervalued

Using an unlevered Free Cash Flow to Firm (FCFF) model, we project Piper Sandler Companies's cash flows over 5 years with line-by-line expense modeling. Revenue is projected revenue growing from 10.7% to -1.0% annually, with expenses (COGS, SG&A, R&D) held at historical ratios. Depreciation is computed from a vintage matrix based on a 5-year useful life. Working capital is modeled using historical turnover days (DSO 71, DPO 260, DIO 60). At a 7.3% WACC with mid-year discounting, the terminal value (78% of enterprise value) is derived by applying the industry peer median EV/EBITDA multiple of 11.6x to Year 6 EBITDA. After subtracting net debt, the equity value implies a fair price of $108.51 per share, suggesting PIPR is undervalued by 35.0% at the current price of $80.40.

FCFF Present Value Calculation

WACC

7.32%

3% – 20%

EV/EBITDA Exit Multiple

11.59x

1x – 40x

Forecast Period

5 Yrs

+ Terminal Year

Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.

Currency: USD Millions

	2026	2027	2028	2029	2030	Terminal
Profit Before Tax	584	660	689	682	675	692
(−) Net Interest	11	13	13	13	13	13
(+) D&A	22	24	24	29	33	34
EBITDA	617	697	727	724	721	739

(−) Tax	138	157	163	162	160	—
(−) CapEx	29	33	34	34	34	—
(−) ΔWC	390	51	19	-5	-5	—
Free Cash Flow (FCF)	60	456	510	533	532	—

Peers' EBITDA Multiple						11.6x
Terminal Value						8,567
WACC / Discount Rate	7.32%

Timing of FCF (mid year)	0.5	1.5	2.5	3.5	4.5	5
Present Value of FCF	58	411	427	417	387	6,018

Enterprise Value	7,718
Projection Period	1,699	22.0%
Terminal Value	6,018	78.0%

(−) Current Net Debt	0
Equity Value	7,718
(÷) Outstanding Shares	71M
Fair Price	$108	+34.9%

Sensitivity Analysis

WACC \ EV/EBITDA Exit Multiple	7.6x	9.6x	11.6x	13.6x	15.6x
5.3%	$86	$102	$118	$134	$150
6.3%	$83	$98	$113	$129	$144
7.3%	$79	$94	$109	$123	$138
8.3%	$76	$90	$104	$118	$132
9.3%	$73	$87	$100	$113	$126

Current price: $80.40. Green = undervalued, Red = overvalued.

Based on default parameters

Fair Value

$108.36

Market Price

$80.40

Upside / Downside

+34.8%

Verdict

Undervalued

Using an unlevered Free Cash Flow to Firm (FCFF) model, we project Piper Sandler Companies's cash flows over 10 years with analyst estimates for the first 3–5 years, fading toward long-term GDP growth for the remaining years with line-by-line expense modeling. Revenue is projected revenue growing from 10.7% to 2.3% annually, with expenses (COGS, SG&A, R&D) held at historical ratios. Depreciation is computed from a vintage matrix based on a 5-year useful life. Working capital is modeled using historical turnover days (DSO 71, DPO 260, DIO 60). At a 7.3% WACC with mid-year discounting, the terminal value (58% of enterprise value) is derived by applying the industry peer median EV/EBITDA multiple of 11.6x to Year 11 EBITDA. After subtracting net debt, the equity value implies a fair price of $108.38 per share, suggesting PIPR is undervalued by 34.8% at the current price of $80.40.

FCFF Present Value Calculation

WACC

7.32%

3% – 20%

EV/EBITDA Exit Multiple

11.59x

1x – 40x

Forecast Period

5 Yrs

+ Terminal Year

Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.

Currency: USD Millions

	2026	2027	2028	2029	2030	2031	2032	2033	2034	2035	Terminal
Profit Before Tax	584	660	689	682	675	673	675	682	693	710	727
(−) Net Interest	11	13	13	13	13	13	13	13	13	14	14
(+) D&A	22	24	24	29	33	33	34	34	34	34	35
EBITDA	617	697	727	724	721	719	722	729	740	757	776

(−) Tax	138	157	163	162	160	160	160	162	164	168	—
(−) CapEx	29	33	34	34	34	33	34	34	34	35	—
(−) ΔWC	390	51	19	-5	-5	-2	1	5	8	11	—
Free Cash Flow (FCF)	60	456	510	533	532	527	527	529	534	543	—

Peers' EBITDA Multiple											11.6x
Terminal Value											8,993
WACC / Discount Rate	7.32%

Timing of FCF (mid year)	0.5	1.5	2.5	3.5	4.5	5.5	6.5	7.5	8.5	9.5	5
Present Value of FCF	58	411	427	417	387	357	333	311	293	277	4,438

Enterprise Value	7,709
Projection Period	3,271	42.4%
Terminal Value	4,438	57.6%

(−) Current Net Debt	0
Equity Value	7,709
(÷) Outstanding Shares	71M
Fair Price	$108	+34.8%

Sensitivity Analysis

WACC \ EV/EBITDA Exit Multiple	7.6x	9.6x	11.6x	13.6x	15.6x
5.3%	$100	$113	$126	$139	$152
6.3%	$93	$105	$117	$129	$140
7.3%	$87	$98	$108	$119	$130
8.3%	$81	$91	$101	$111	$120
9.3%	$76	$85	$94	$103	$112

Current price: $80.40. Green = undervalued, Red = overvalued.

Based on default parameters

Trading Multiples

Fair Value

$63.73

Market Price

$80.40

Upside / Downside

-20.7%

Verdict

Overvalued

P/E Valuation — Financial - Capital Markets

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing P/E	Forward P/E
Piper Sandler CompaniesPIPR	5,720	20.3x	27.2x
Virtu Financial, Inc.VIRT	10,036	9.3x	14.4x
StoneX Group Inc.SNEX	6,737	14.5x	25.0x
MarketAxess Holdings Inc.MKTX	6,511	26.3x	21.5x
First American Financial CorporationFAF	6,165	10.1x	38.1x
PennyMac Financial Services, Inc.PFSI	4,715	9.7x	12.6x
Moelis & CompanyMC	4,176	19.2x	20.5x
Lazard LtdLAZ	3,938	19.1x	17.7x
PJT Partners Inc.PJT	3,388	21.0x	20.7x
Industry Median		16.8x	20.6x
(*) Profit after tax		281	210
Equity Value		4,735	4,332
(/) Outstanding shares		71	71
Fair Price		$67	$61

Selected Fair Value (avg of trailing + forward)

$63.73

-20.7%

Fair Value

$71.81

Market Price

$80.40

Upside / Downside

-10.7%

Verdict

Overvalued

EV/EBITDA Valuation — Financial - Capital Markets

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing EV/EBITDA	Forward EV/EBITDA
Piper Sandler CompaniesPIPR	5,720	12.2x	15.5x
Virtu Financial, Inc.VIRT	10,036	7.3x	17.1x
StoneX Group Inc.SNEX	6,737	11.9x	—
MarketAxess Holdings Inc.MKTX	6,511	13.9x	12.9x
First American Financial CorporationFAF	6,165	5.6x	6.8x
Hut 8 Corp.HUT	5,498	57.7x	39.5x
PennyMac Financial Services, Inc.PFSI	4,715	18.2x	48.1x
Moelis & CompanyMC	4,176	11.6x	11.7x
Lazard LtdLAZ	3,938	11.2x	12.0x
PJT Partners Inc.PJT	3,388	8.3x	8.3x
Industry Median		11.6x	12.5x
(*) EBITDA		413	325
= Enterprise Value		4,787	4,043
(-) Net Debt		-693	-693
Equity Value		5,480	4,736
(/) Outstanding shares		71	71
Fair Price		$77	$67

Selected Fair Value (avg of trailing + forward)

$71.81

-10.7%

Fair Value

$114.61

Market Price

$80.40

Upside / Downside

+42.5%

Verdict

Undervalued

EV/Revenue Valuation — Financial - Capital Markets

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing EV/Revenue	Forward EV/Revenue
Piper Sandler CompaniesPIPR	5,720	2.6x	3.4x
Virtu Financial, Inc.VIRT	10,036	2.7x	6.3x
StoneX Group Inc.SNEX	6,737	0.2x	7.0x
TeraWulf Inc.WULF	6,594	50.6x	22.5x
MarketAxess Holdings Inc.MKTX	6,511	7.4x	6.9x
First American Financial CorporationFAF	6,165	0.9x	1.1x
Hut 8 Corp.HUT	5,498	25.0x	17.1x
PennyMac Financial Services, Inc.PFSI	4,715	6.3x	16.7x
Moelis & CompanyMC	4,176	2.6x	2.6x
Lazard LtdLAZ	3,938	1.6x	1.7x
PJT Partners Inc.PJT	3,388	1.9x	1.9x
Industry Median		2.6x	6.6x
(*) Revenue		1,904	1,497
= Enterprise Value		5,029	9,892
(-) Net Debt		-693	-693
Equity Value		5,722	10,585
(/) Outstanding shares		71	71
Fair Price		$80	$149

Selected Fair Value (avg of trailing + forward)

$114.61

+42.5%

PEG Fair Value

Fair Value

$120.56

Market Price

$80.40

Upside / Downside

+50.0%

Verdict

Undervalued

PEG Ratio

0.55Deep Value

01.02.03.0+

PEG = P/E ÷ (Growth + Yield) = 16.2 ÷ (21.1% + 8.2%) = 0.55

PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.

Growth Category: Fast GrowerPEG highly applicable

PEG is most informative for high-growth companies — the PEG sweet spot.

Fair Value Calculation

EPS Growth RateForward	21.1%
Dividend Yield	+8.2%
Adjusted Growth (clamped 8–25%)Clamped	25.0%
Fair P/E	25.0x
NTM EPS (FY2026)	$4.82
Fair Value	$120.56

Growth Analysis

Forward GrowthActive

Period	EPS Est.	Growth	Analysts
FY2025 (actual)	$3.96	—	—
FY2026E	$4.82	+21.8%	3
FY2027E	$5.81	+20.4%	3

2Y Forward EPS CAGR: 21.1%

Historical Growth

Year	Net Income	EPS	YoY
FY2021	$278.5M	$4.11	—
FY2022	$110.7M	$1.63	-60.3%
FY2023	$85.5M	$1.24	-23.9%
FY2024	$181.1M	$2.56	+106.5%
FY2025	$281.3M	$3.96	+54.7%

4Y Historical EPS CAGR: -0.9%

Earnings Power Value

Fair Value

$78.79

Market Price

$80.40

Upside / Downside

-2.0%

Verdict

Overvalued

Currency: USD Millions

	Low	Selected	High
Normalized Earnings	410	410	410
(/) WACC	8.8%	7.3%	5.8%
Enterprise Value	4,652	5,605	7,050
(-) Net debt	0	0	0
Equity Value	4,652	5,605	7,050
(/) Outstanding shares	71	71	71
Fair Price	$65.39	$78.79	$99.10

Dividend Discount Model

Fair Value

$52.05

Market Price

$80.40

Upside / Downside

-35.3%

Verdict

Overvalued

Dividend Profile

Current DPS

$1.60

Dividend Yield

8.21%

Payout Ratio

40.6%

Dividend Coverage

2.46x

FCF Payout Ratio16.4%

DPS CAGR (4Y)2.3%

Historical Dividends Per Share

Year	DPS	Payout Ratio	YoY Growth
2025	$1.60	40.6%	+54.0%
2024	$1.04	40.7%	-15.0%
2023	$1.23	98.8%	-22.6%
2022	$1.58	97.2%	+8.2%
2021	$1.46	35.7%	—

Dividend Projections (5-Year)

Year	Projected DPS	Growth	Discount Factor	Present Value
2026	$1.80	12.3%	0.9318	$1.68
2027	$2.02	12.3%	0.8683	$1.76
2028	$2.27	12.3%	0.8091	$1.84
2029	$2.55	12.3%	0.7539	$1.92
2030	$2.87	12.3%	0.7025	$2.01
Terminal Value	$2.94 DPS	2.5%		$42.83

PV of Projected Dividends$9.21

PV of Terminal Value$42.83

Fair Value per Share$52.05

Sensitivity Analysis

Fair value under different Cost of Equity (rows) and DPS Growth Rate (columns) assumptions.

Ke \ Growth	10.3%	11.3%	12.3%	13.3%	14.3%
5.3%	$83	$86	$90	$94	$98
6.3%	$61	$63	$66	$69	$72
7.3%	$48	$50	$52	$54	$57
8.3%	$39	$41	$43	$45	$46
9.3%	$33	$35	$36	$38	$39