Charles Schwab (HAM:SWG) Forward PE Ratio Explanation
The Forward PE Ratio of a company is often used to compare current earnings to estimated future earnings, as well as gaining a clearer picture of what earnings will look like without charges and other accounting adjustments. If earnings are expected to grow in the future, the Forward PE Ratio will be lower than the current PE Ratio. This measure is also used to compare one company to another with a forward-looking focus.
Trailing PE Ratio relies on what is already done. It uses the current share price and divides by the total EPS (Basic) over the past 12 months. PE Ratio can be affected by Non Operating Income such as the sale of part of businesses. This may increase for the current year or quarter dramatically. But it cannot be repeated over and over. Therefore PE Ratio without NRI is a more accurate indication of valuation than PE Ratio .
Charles Schwab Forward PE Ratio Related Terms
Charles Schwab Forward PE Ratio Historical Data
* Premium members only.
The historical data trend for Charles Schwab's Forward PE Ratio can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Charles Schwab Forward PE Ratio Chart
Charles Schwab Annual Data
Trend
2025-12
Forward PE Ratio
17.78
Charles Schwab Quarterly Data
2025-12
2026-03
Forward PE Ratio
17.78
16.54
HAM:SWG vs HOOD, IBKR, LPLA: Forward PE Ratio Comparison
For the Capital Markets subindustry, Charles Schwab's Forward PE Ratio, along with its competitors' market caps and Forward PE Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Charles Schwab Forward PE Ratio vs Capital Markets Industry
For the Capital Markets industry and Financial Services sector, Charles Schwab's Forward PE Ratio distribution charts can be found below:
* The bar in red indicates where Charles Schwab's Forward PE Ratio falls into.
It's a measure of the price-to-earnings ratio (PE Ratio) using forecasted earnings for the calculation. While the earnings used are just an estimate and are not as reliable as current earnings data, there is still benefit in estimated P/E analysis. The forecasted earnings used in the formula can either be for the next 12 months or for the next full-year fiscal period.
Charles Schwab (HAM:SWG) has a Forward PE Ratio of 15.71 as of Jul. 05, 2026. Forward P/E ratio is the share price dividend by the expected per-share earnings in the next 12 months. View historical data on Charles Schwab and its competitors. According to the industry distribution chart, Charles Schwab ranks #106 out of 221 companies in the Capital Markets industry, placing it in the top 48%.
Is Charles Schwab's Forward PE Ratio too high?
Charles Schwab's current Forward PE Ratio is 15.71. The Capital Markets industry median Forward PE Ratio is 16.30. Charles Schwab's value of 15.71 is 3.6% below this industry median. Based on the distribution chart, Charles Schwab ranks #106 out of 221 companies in the Capital Markets industry, which is above the industry midpoint. Overall, Charles Schwab has a GF Score™ of 73/100, reflecting its overall financial health beyond just this single metric.
How does Charles Schwab's Forward PE Ratio compare to HOOD and IBKR?
According to the Capital Markets industry distribution chart, Charles Schwab ranks #106 out of 221 companies for Forward PE Ratio. This puts Charles Schwab in the upper half of its industry. The industry median Forward PE Ratio is 16.30. Charles Schwab's value of 15.71 is 3.6% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Forward PE Ratio for a Capital Markets company?
The median Forward PE Ratio among Capital Markets companies is 16.30, based on 221 companies in the industry. Companies in the top quartile (top 25%) have a Forward PE Ratio significantly above this median, while those in the bottom quartile fall well below. However, Forward PE Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Charles Schwab's current Forward PE Ratio of 15.71 is 3.6% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Forward PE Ratio mean?
A high Forward PE Ratio can signal that a stock is expensive relative to its fundamentals. Forward P/E ratio is the share price dividend by the expected per-share earnings in the next 12 months. View historical data on Charles Schwab and its competitors. For the Capital Markets industry, the median Forward PE Ratio is 16.30 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Charles Schwab's current Forward PE Ratio is 15.71. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Charles Schwab stock overvalued right now?
Charles Schwab (HAM:SWG) has a current Forward PE Ratio of 15.71. The stock's GF Value™ is €90.63, compared to a current price of €85.10 — trading 6.1% below its estimated fair value. The current Forward PE Ratio is 15.71 and 3.6% below the Capital Markets industry median of 16.30. Charles Schwab's overall GF Score™ is 73/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Forward PE Ratio calculated?
Forward PE Ratio is calculated from a company's financial statements. For Charles Schwab (HAM:SWG), the current Forward PE Ratio is 15.71 as of Jul. 05, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Charles Schwab (HAM:SWG) Overvalued in 2026?
Based on GuruFocus' analysis, Charles Schwab stock appears to be undervalued.
The current stock price of €85.10 is trading 6.1% below its estimated GF Value™ of €90.63.
Key valuation signals for HAM:SWG:
Forward PE Ratio: 15.71
GF Value™: €90.63 vs. price of €85.10 (6.1% below fair value)
Industry Position: 3.6% below the Capital Markets median (#106 of 221)
No single metric tells the full story. See the HAM:SWG stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Charles Schwab is one of the largest retail-oriented financial-services companies in the US, with $11.9 trillion in client assets across its brokerage, banking, asset management, custody, financial advisory, and wealth management businesses at the end of 2025. While best known for its retail brokerage offering, Schwab generates the lion's share of its revenue and profits through its Charles Schwab Bank and asset management segments. The firm is a dominant player in Registered Investment Advisor(RIA) custody, with over 40% market share, and has recently pushed into wealth management with robo-advisory, direct indexing, and other managed-investment solutions.
73GF Score
Get the complete analysis for HAM:SWG
Forward PE Ratio is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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