Using the industry peer median P/E multiple (trailing + forward), The Charles Schwab Corporation (SCHW) has a fair value of $89.69 based on 7 comparable companies in the Financial - Capital Markets industry.
USD in millions except Fair Price. Subject company highlighted.
| Mkt Cap ($M) | Trailing P/E | Forward P/E | |
|---|---|---|---|
| The Charles Schwab CorporationSCHW | 168,175 | 20.3x | 16.1x |
| Bank of America CorporationBAC | 353,404 | 12.7x | 12.7x |
| Morgan StanleyMS | 260,679 | 16.1x | 16.6x |
| The Goldman Sachs Group, Inc.GS | 247,147 | 16.1x | 16.9x |
| Citigroup Inc.C | 196,938 | 16.1x | 10.9x |
| BlackRock, Inc.BLK | 151,648 | 27.5x | 20.6x |
| Blackstone Inc.BX | 132,768 | 28.5x | 20.6x |
| Robinhood Markets, Inc.HOOD | 63,179 | 34.2x | 30.1x |
| Industry Median | 16.1x | 16.9x | |
| (*) Profit after tax | 8,852 | 10,444 | |
| Equity Value | 142,569 | 176,185 | |
| (/) Outstanding shares | 1,777 | 1,777 | |
| Fair Price | $80 | $99 | |
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.