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Robinhood Markets (NAS:HOOD) 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 .
Robinhood Markets Forward PE Ratio Related Terms
Robinhood Markets Forward PE Ratio Historical Data
* Premium members only.
The historical data trend for Robinhood Markets'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.
Robinhood Markets Forward PE Ratio Chart
Robinhood Markets Annual Data
Trend
2024-12
2025-12
Forward PE Ratio
40.23
46.91
Robinhood Markets Quarterly Data
2024-12
2025-03
2025-06
2025-09
2025-12
2026-03
Forward PE Ratio
40.23
29.52
63.18
56.96
46.91
27.86
HOOD vs IBKR, LPLA, SCHW: Forward PE Ratio Comparison
For the Capital Markets subindustry, Robinhood Markets'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.
Robinhood Markets Forward PE Ratio vs Capital Markets Industry
For the Capital Markets industry and Financial Services sector, Robinhood Markets's Forward PE Ratio distribution charts can be found below:
* The bar in red indicates where Robinhood Markets'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.
Robinhood Markets (HOOD) has a Forward PE Ratio of 58.78 as of Jul. 14, 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 Robinhood Markets and its competitors. According to the industry distribution chart, Robinhood Markets ranks #200 out of 221 companies in the Capital Markets industry, placing it in the top 90.5%.
Is Robinhood Markets' Forward PE Ratio too high?
Robinhood Markets' current Forward PE Ratio is 58.78. The Capital Markets industry median Forward PE Ratio is 16.38. Robinhood Markets' value of 58.78 is 258.9% above this industry median. Based on the distribution chart, Robinhood Markets ranks #200 out of 221 companies in the Capital Markets industry, which is in the bottom quartile relative to peers. Overall, Robinhood Markets has a GF Score™ of 75/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Robinhood Markets' Forward PE Ratio compare to IBKR and LPLA?
According to the Capital Markets industry distribution chart, Robinhood Markets ranks #200 out of 221 companies for Forward PE Ratio. This places Robinhood Markets in the lower half of its industry. The industry median Forward PE Ratio is 16.38. Robinhood Markets' value of 58.78 is 258.9% above 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 16.38, 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. Robinhood Markets's current Forward PE Ratio of 58.78 is 258.9% above 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 Robinhood Markets and its competitors. For the Capital Markets industry, the median Forward PE Ratio is 16.38 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Robinhood Markets's current Forward PE Ratio is 58.78. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Robinhood Markets stock overvalued right now?
Based on GuruFocus' analysis, Robinhood Markets (HOOD) is currently considered Significantly Overvalued. The stock's GF Value™ is $62.73, compared to a current price of $113.45 — trading 80.9% above its estimated fair value. The current Forward PE Ratio is 58.78 and 258.9% above the Capital Markets industry median of 16.38. Robinhood Markets' overall GF Score™ is 75/100 with 5 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 Robinhood Markets (HOOD), the current Forward PE Ratio is 58.78 as of Jul. 14, 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 Robinhood Markets (HOOD) Overvalued in 2026?
Based on GuruFocus' analysis, Robinhood Markets stock appears to be overvalued.
The current stock price of $113.45 is trading 80.9% above its estimated GF Value™ of $62.73.
GuruFocus considers Robinhood Markets to be Significantly Overvalued.
Key valuation signals for HOOD:
Forward PE Ratio: 58.78
GF Value™: $62.73 vs. price of $113.45 (80.9% above fair value)
Industry Position: 258.9% above the Capital Markets median (#200 of 221)
No single metric tells the full story. See the HOOD stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Robinhood is a diversified financial services provider best known for its retail brokerage platform, which historically caters to a young, risk-seeking clientele that trades heavily on margin and in higher-risk asset classes like options, futures, cryptocurrencies, and more recently, in prediction markets. As those customers' financial needs have begun to mature, Robinhood has rolled out a suite of more conventional products, from retirement accounts to high-yield cash sweep accounts to nascent advisory services (Robinhood Strategies). With $322 billion in customer assets and 27 million active accounts at year-end 2025, the firm has emerged as a significant player in the large, quickly growing US brokerage market.
75GF Score
Get the complete analysis for HOOD
Forward PE Ratio is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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