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LPL Financial Holdings PE Ratio

: 36.25 (As of Today)
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The PE Ratio, or Price-to-Earnings ratio, or P/E Ratio, is a financial ratio used to compare a company's market price to its Earnings per Share (Diluted). As of today (2022-08-19), LPL Financial Holdings's share price is $224.39. LPL Financial Holdings's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Jun. 2022 was $6.19. Therefore, LPL Financial Holdings's PE Ratio for today is 36.25.

Warning Sign:

LPL Financial Holdings Inc stock PE Ratio (=37.67) is close to 10-year high of 37.89


The historical rank and industry rank for LPL Financial Holdings's PE Ratio or its related term are showing as below:

LPLA' s PE Ratio Range Over the Past 10 Years
Min: 6.66   Med: 21.42   Max: 38.01
Current: 35.54


During the past 13 years, the highest PE Ratio of LPL Financial Holdings was 38.01. The lowest was 6.66. And the median was 21.42.


LPLA's PE Ratio is ranked worse than
81.4% of 559 companies
in the Capital Markets industry
Industry Median: 13.83 vs LPLA: 35.54

LPL Financial Holdings's Earnings per Share (Diluted) for the three months ended in Jun. 2022 was $1.97. Its Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Jun. 2022 was $6.19.

As of today (2022-08-19), LPL Financial Holdings's share price is $224.39. LPL Financial Holdings's EPS without NRI for the trailing twelve months (TTM) ended in Jun. 2022 was $6.19. Therefore, LPL Financial Holdings's PE Ratio without NRI for today is 36.25.

During the past 13 years, LPL Financial Holdings's highest PE Ratio without NRI was 38.01. The lowest was 6.66. And the median was 21.42.

LPL Financial Holdings's EPS without NRI for the three months ended in Jun. 2022 was $1.97. Its EPS without NRI for the trailing twelve months (TTM) ended in Jun. 2022 was $6.19.

During the past 12 months, LPL Financial Holdings's average EPS without NRI Growth Rate was -3.90% per year. During the past 3 years, the average EPS without NRI Growth Rate was 5.10% per year. During the past 5 years, the average EPS without NRI Growth Rate was 24.30% per year. During the past 10 years, the average EPS without NRI Growth Rate was 18.80% per year.

During the past 13 years, LPL Financial Holdings's highest 3-Year average EPS without NRI Growth Rate was 48.50% per year. The lowest was 1.80% per year. And the median was 13.10% per year.

LPL Financial Holdings's EPS (Basic) for the three months ended in Jun. 2022 was $2.01. Its EPS (Basic) for the trailing twelve months (TTM) ended in Jun. 2022 was $6.32.


LPL Financial Holdings PE Ratio Historical Data

The historical data trend for LPL Financial Holdings's 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.

* Premium members only.

LPL Financial Holdings Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
PE Ratio
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 22.06 12.59 13.94 17.78 28.44

LPL Financial Holdings Quarterly Data
Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
PE Ratio Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 23.60 27.55 28.44 32.16 29.80

Competitive Comparison

For the Capital Markets subindustry, LPL Financial Holdings's PE Ratio, along with its competitors' market caps and 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.

   

LPL Financial Holdings PE Ratio Distribution

For the Capital Markets industry and Financial Services sector, LPL Financial Holdings's PE Ratio distribution charts can be found below:

* The bar in red indicates where LPL Financial Holdings's PE Ratio falls into.



LPL Financial Holdings PE Ratio Calculation

The PE Ratio, or Price-to-Earnings ratio, or P/E Ratio, is a financial ratio used to compare a company's market price to its Earnings per Share (Diluted). It is the most widely used ratio in the valuation of stocks.

LPL Financial Holdings's PE Ratio for today is calculated as

PE Ratio=Share Price/Earnings per Share (Diluted) (TTM)
=224.39/6.190
=36.25

LPL Financial Holdings's Share Price of today is $224.39.
LPL Financial Holdings's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Jun. 2022 adds up the quarterly data reported by the company within the most recent 12 months, which was $6.19.

* 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.

It can also be calculated from the numbers for the whole company:


There are at least three kinds of PE Ratios used by different investors. They are Trailing Twelve Month PE Ratio or PE Ratio (TTM), Forward PE Ratio, or PE Ratio without NRI. A new PE Ratio based on inflation-adjusted normalized PE Ratio is called Shiller PE Ratio, after Yale professor Robert Shiller.

In the calculation of PE Ratio, the earnings per share used are the earnings per share over the past 12 months. For Forward PE Ratio, the earnings are the expected earnings for the next twelve months. In the case of PE Ratio without NRI, the reported earnings less the non-recurring items are used.

For Shiller PE Ratio, the earnings of the past 10 years are inflation-adjusted and averaged. Since it looks at the average over the last 10 years, Shiller PE Ratio is also called PE10.


LPL Financial Holdings  (NAS:LPLA) PE Ratio Explanation

The PE Ratio can be viewed as the number of years it takes for the company to earn back the price you pay for the stock. For example, if a company earns $2 a share per year, and the stock is traded at $30, the PE Ratio is 15. Therefore it takes 15 years for the company to earn back the $30 you paid for its stock, assuming the earnings stays constant over the next 15 years.

In real business, earnings never stay constant. If a company can grow its earnings, it takes fewer years for the company to earn back the price you pay for the stock. If a company's earnings decline it takes more years. As a shareholder, you want the company to earn back the price you pay as soon as possible. Therefore, lower P/E stocks are more attractive than higher P/E stocks so long as the PE Ratio is positive. Also for stocks with the same PE Ratio, the one with faster growth business is more attractive.

If a company loses money, the PE Ratio becomes meaningless.

To compare stocks with different growth rates, Peter Lynch invented a ratio called PEG Ratio. PEG Ratio is defined as the PE Ratio divided by the growth ratio. He thinks a company with a PE Ratio equal to its growth rate is fairly valued. Still he said he would rather buy a company growing 20% a year with a PE Ratio of 20, instead of a company growing 10% a year with a PE Ratio of 10.

Because the PE Ratio measures how long it takes to earn back the price you pay, the PE Ratio can be applied to the stocks across different industries. That is why it is the one of the most important and widely used indicators for the valuation of stocks.

Similar to the PE Ratio without NRI or PS Ratio or Price-to-Operating-Cash-Flow or Price-to-Free-Cash-Flow , the PE Ratio measures the valuation based on the earning power of the company. This is where it is different from the PB Ratio , which measures the valuation based on the company's balance sheet.


Be Aware

Investors need to be aware that the PE Ratio can be misleading a lot of times, especially when the underlying business is cyclical and unpredictable. As Peter Lynch pointed out, cyclical businesses have higher profit margins at the peaks of the business cycles. Their earnings are high and PE Ratios are artificially low. It is usually a bad idea to buy a cyclical business when the PE Ratio is low. A better ratio to identify the time to buy a cyclical businesses is the PS Ratio .

PE Ratio can also be affected by non-recurring-items 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.


LPL Financial Holdings PE Ratio Related Terms

Thank you for viewing the detailed overview of LPL Financial Holdings's PE Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.


LPL Financial Holdings Business Description

LPL Financial Holdings logo
Traded in Other Exchanges
Address
4707 Executive Drive, San Diego, CA, USA, 92121
LPL Financial Holdings is an independent broker/dealer that provides a platform of proprietary technology, brokerage, and investment advisory services to financial advisors and institutions. The company also provides financial advisors licensed with insurance companies customized clearing services, advisory platforms, and technology solutions. LPL provides a range of services through its subsidiaries. Private Trust supplies trust administration, investment management oversight, and custodial services for estates and families; Independent Advisers Group offers investment advisory solutions to insurance companies; and LPL Insurance Associates operates as a brokerage general agency that offers life, long-term care, and disability insurance sales and services.
Executives
Sethi Kabir officer: Managing Director C/O LPL FINANCIAL 4707 EXECUTIVE DRIVE SAN DIEGO CA 92121
Gates Greg officer: Managing Director C/O LPL FINANCIAL 4707 EXECUTIVE DRIVE SAN DIEGO CA 92121
Simonich Brent officer: EVP, CAO and Treasurer C/O E*TRADE FINANCIAL CORP. 11 TIMES SQUARE, 32ND FLOOR NEW YORK NY 10036-9992
Fandrey Edward officer: Managing Director C/O LPL FINANCIAL 4707 EXECUTIVE DRIVE SAN DIEGO CA 92121
Bernard Edward C director T ROWE PRICE GROUP INC 100 E PRATT ST BALTIMORE MD 21202
Enyedi Matthew officer: Managing Director C/O LPL FINANCIAL HOLDINGS, INC. 75 STATE STREET, 22ND FLOOR BOSTON MA 02109
Thomas Corey E. director C/O RAPID7, INC. 100 SUMMER STREET BOSTON MA 02110
Semerjian Dayton officer: Managing Director 600 NICKERSON RD. MARLBORO MA 01752
Steinmeier Richard officer: Managing Director C/O LPL FINANCIAL HOLDINGS, INC. 75 STATE STREET, 22ND FLOOR BOSTON MA 02109
Mnookin Allison director C/O INTUIT 150 CAMBRIDGE PARK DRIVE CAMBRIDGE MA 02140
Seese Scott officer: MD, Chief Information Officer C/O LPL FINANCIAL HOLDINGS, INC. 75 STATE STREET, 22ND FLOOR BOSTON MA 02109
Glavin William Francis Jr director 6803 SOUTH TUCSON WAY CENTENNIAL CO 80112
Hellman Marco director BLACKBAUD INC 2000 DANIEL ISLAND DRIVE CHARLESTON SC 29492
Calder Tracy officer: MD, Deputy Chief Risk Officer C/O LPL FINANCIAL HOLDINGS, INC. 75 STATE STREET, 22ND FLOOR BOSTON MA 02109
Dinh Viet D director GEORGETOWN UNIVERSITY LAW CENTER 600 NEW JERSEY AVENUE NW WASHINGTON DC 20001

LPL Financial Holdings Headlines

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