LPL Financial HoldingsLPLA -2.80%86 Interest Coverage is 5.83 as of Mar. 2026, which is 9% below its 10-year median of 6.41. GuruFocus rates LPLA with a GF Score™ of 86/100 and a GF Value™ of $461.58 (Significantly Undervalued). The stock has 4 warning signs investors should review. Among 427 Capital Markets companies, LPL Financial Holdings ranks worse than 69.56% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. LPL Financial Holdings's
Operating Income
for the
three
months ended in Mar. 2026 was $585 Mil. LPL Financial Holdings's Interest Expense for the
three
months ended in Mar. 2026 was $-100 Mil.
LPL Financial Holdings's interest coverage for the quarter that ended in Mar. 2026 was 5.83.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for LPL Financial Holdings's Interest Coverage or its related term are showing as below:
LPLA'
s Interest Coverage Range Over the Past 10 Years
Min: 3.85 Med: 6.41 Max: 9.81
Current: 3.91
LPLA's Interest Coverage is ranked worse than 69.56% of 427
companies
in the Capital Markets industry
Industry Median: 19.12
vs LPLA: 3.91
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
LPL Financial Holdings Interest Coverage Related Terms
LPL Financial Holdings Interest Coverage Historical Data
* Premium members only.
The historical data trend for LPL Financial Holdings's Interest Coverage 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.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
LPLA vs TW, IREN, CRCL: Interest Coverage Comparison
For the Capital Markets subindustry, LPL Financial Holdings's Interest Coverage, along with its competitors' market caps and Interest Coverage 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.
LPL Financial Holdings Interest Coverage vs Capital Markets Industry
For the Capital Markets industry and Financial Services sector, LPL Financial Holdings's Interest Coverage distribution charts can be found below:
* The bar in red indicates where LPL Financial Holdings's Interest Coverage falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* 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.
LPL Financial Holdings (LPLA) has a Interest Coverage of 5.83 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on LPL Financial Holdings and its competitors. This is near median its historical median of 6.41. Over the past decade, LPL Financial Holdings' Interest Coverage has ranged from 3.85 to 9.81. According to the industry distribution chart, LPL Financial Holdings ranks #297 out of 427 companies in the Capital Markets industry, placing it in the top 69.6%.
Is LPL Financial Holdings' Interest Coverage too high?
LPL Financial Holdings' current Interest Coverage of 5.83 is near median its 10-year median of 6.41. Over the past 10 years, this metric has ranged from a low of 3.85 to a high of 9.81. The Capital Markets industry median Interest Coverage is 19.12. LPL Financial Holdings' value of 5.83 is 69.5% below this industry median. Based on the distribution chart, LPL Financial Holdings ranks #297 out of 427 companies in the Capital Markets industry, which is below the industry midpoint. Overall, LPL Financial Holdings has a GF Score™ of 86/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does LPL Financial Holdings' Interest Coverage compare to TW and IREN?
According to the Capital Markets industry distribution chart, LPL Financial Holdings ranks #297 out of 427 companies for Interest Coverage. This places LPL Financial Holdings in the lower half of its industry. The industry median Interest Coverage is 19.12. LPL Financial Holdings' value of 5.83 is 69.5% below this benchmark. Historically, LPL Financial Holdings' own Interest Coverage has ranged from 3.85 to 9.81 over the past decade. While the company's 10-year median is 6.41 vs. the industry median of 19.12, LPL Financial Holdings has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for a Capital Markets company?
The median Interest Coverage among Capital Markets companies is 19.12, based on 427 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. LPL Financial Holdings's current Interest Coverage of 5.83 is 69.5% 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 Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on LPL Financial Holdings and its competitors. For the Capital Markets industry, the median Interest Coverage is 19.12 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. LPL Financial Holdings's current Interest Coverage is 5.83, which is near median its own 10-year median of 6.41. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is LPL Financial Holdings stock overvalued right now?
Based on GuruFocus' analysis, LPL Financial Holdings (LPLA) is currently considered Significantly Undervalued. The stock's GF Value™ is $461.58, compared to a current price of $274.22 — trading 40.6% below its estimated fair value. The current Interest Coverage is 5.83, which is near median its 10-year median of 6.41 and 69.5% below the Capital Markets industry median of 19.12. LPL Financial Holdings' overall GF Score™ is 86/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For LPL Financial Holdings (LPLA), the current Interest Coverage is 5.83 as of Mar. 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 LPL Financial Holdings (LPLA) Overvalued in 2026?
Based on GuruFocus' analysis, LPL Financial Holdings stock appears to be undervalued.
The current stock price of $274.22 is trading 40.6% below its estimated GF Value™ of $461.58.
GuruFocus considers LPL Financial Holdings to be Significantly Undervalued.
Key valuation signals for LPLA:
Interest Coverage: 5.83 (near median its 10-year median of 6.41)
GF Value™: $461.58 vs. price of $274.22 (40.6% below fair value)
Industry Position: 69.5% below the Capital Markets median (#297 of 427)
No single metric tells the full story. See the LPLA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
LPL Financial is the largest US independent broker-dealer, with more than 32,000 financial advisors affiliated with its platform and roughly 11 million customer accounts at the end of 2025. The firm earns the bulk of its profit from interest income earned on client cash balances and from advisory fees and commissions tied to the $2.4 trillion in assets under management or advisory on its platform at year-end 2025. LPL specializes in providing turnkey wealth management services for affiliated independent advisors, but maintains a diverse array of affiliation modalities, running the gamut from more traditional employee models to a pure RIA custody approach. It earns tuck-in revenue from recordkeeping fees and the provision of software tools and services to its advisor base.
86GF Score
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