LPL Financial HoldingsLPLA +1.81%81 5-Year Yield-on-Cost % is 0.49 as of Jul. 11, 2026, which is 43% below its 10-year median of 0.86. GuruFocus rates LPLA with a GF Score™ of 81/100 and a GF Value™ of $465.56 (Significantly Undervalued). The stock has 4 warning signs investors should review. Among 363 Capital Markets companies, LPL Financial Holdings ranks worse than 92.29% on this metric.
LPL Financial Holdings's yield on cost for the quarter that ended in Mar. 2026 was 0.49.
The historical rank and industry rank for LPL Financial Holdings's 5-Year Yield-on-Cost % or its related term are showing as below:
LPLA'
s 5-Year Yield-on-Cost % Range Over the Past 10 Years
Min: 0.39 Med: 0.86 Max: 5.39
Current: 0.49
During the past 13 years, LPL Financial Holdings's highest Yield on Cost was 5.39. The lowest was 0.39. And the median was 0.86.
LPLA's 5-Year Yield-on-Cost % is ranked worse than 92.29% of 363
companies
in the Capital Markets industry
Industry Median: 3.06
vs LPLA: 0.49
Of course the risk here is that the company may not raise its dividends as it did before. The key is to select the companies that can consistently raise its dividends. Usually companies with long history of raising dividends tend to do so.
LPL Financial Holdings 5-Year Yield-on-Cost % Related Terms
LPLA vs TW, CRCL, IREN: 5-Year Yield-on-Cost % Comparison
For the Capital Markets subindustry, LPL Financial Holdings's 5-Year Yield-on-Cost %, along with its competitors' market caps and 5-Year Yield-on-Cost % 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 5-Year Yield-on-Cost % vs Capital Markets Industry
For the Capital Markets industry and Financial Services sector, LPL Financial Holdings's 5-Year Yield-on-Cost % distribution charts can be found below:
* The bar in red indicates where LPL Financial Holdings's 5-Year Yield-on-Cost % falls into.
Dividend Yield % and dividend growth of a stock is an important factor for income investors. But if company A raises its dividend constantly faster than company B, company A's future dividend yield might be much higher than Company B's even if their yields are the same now and their stock prices do not change.
Yield on Cost assumes that you buy and the stock today, and hold it for 5 years. If the company raises it dividends at the same rate as it did over the past 5 years, the dividends investors receive annually in 5 years relative to the stock price today.
LPL Financial Holdings (LPLA) has a 5-Year Yield-on-Cost % of 0.49 as of Jul. 11, 2026. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on LPL Financial Holdings and its competitors. This is 43% below median its historical median of 0.86. Over the past decade, LPL Financial Holdings' 5-Year Yield-on-Cost % has ranged from 0.39 to 5.39. According to the industry distribution chart, LPL Financial Holdings ranks #335 out of 363 companies in the Capital Markets industry, placing it in the top 92.3%.
Is LPL Financial Holdings' 5-Year Yield-on-Cost % too high?
LPL Financial Holdings' current 5-Year Yield-on-Cost % of 0.49 is 43% below median its 10-year median of 0.86. Over the past 10 years, this metric has ranged from a low of 0.39 to a high of 5.39. The Capital Markets industry median 5-Year Yield-on-Cost % is 3.06. LPL Financial Holdings' value of 0.49 is 84% below this industry median. Based on the distribution chart, LPL Financial Holdings ranks #335 out of 363 companies in the Capital Markets industry, which is in the bottom quartile relative to peers. Overall, LPL Financial Holdings has a GF Score™ of 81/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does LPL Financial Holdings' 5-Year Yield-on-Cost % compare to TW and CRCL?
According to the Capital Markets industry distribution chart, LPL Financial Holdings ranks #335 out of 363 companies for 5-Year Yield-on-Cost %. This places LPL Financial Holdings in the lower half of its industry. The industry median 5-Year Yield-on-Cost % is 3.06. LPL Financial Holdings' value of 0.49 is 84% below this benchmark. Historically, LPL Financial Holdings' own 5-Year Yield-on-Cost % has ranged from 0.39 to 5.39 over the past decade. While the company's 10-year median is 0.86 vs. the industry median of 3.06, 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 5-Year Yield-on-Cost % for a Capital Markets company?
The median 5-Year Yield-on-Cost % among Capital Markets companies is 3.06, based on 363 companies in the industry. Companies in the top quartile (top 25%) have a 5-Year Yield-on-Cost % significantly above this median, while those in the bottom quartile fall well below. However, 5-Year Yield-on-Cost % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. LPL Financial Holdings's current 5-Year Yield-on-Cost % of 0.49 is 84% 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 5-Year Yield-on-Cost % mean?
A high 5-Year Yield-on-Cost % can signal that a stock is expensive relative to its fundamentals. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on LPL Financial Holdings and its competitors. For the Capital Markets industry, the median 5-Year Yield-on-Cost % is 3.06 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. LPL Financial Holdings's current 5-Year Yield-on-Cost % is 0.49, which is 43% below median its own 10-year median of 0.86. 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 $465.56, compared to a current price of $316.86 — trading 31.9% below its estimated fair value. The current 5-Year Yield-on-Cost % is 0.49, which is 43% below median its 10-year median of 0.86 and 84% below the Capital Markets industry median of 3.06. LPL Financial Holdings' overall GF Score™ is 81/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 5-Year Yield-on-Cost % calculated?
5-Year Yield-on-Cost % is calculated from a company's financial statements. For LPL Financial Holdings (LPLA), the current 5-Year Yield-on-Cost % is 0.49 as of Jul. 11, 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 $316.86 is trading 31.9% below its estimated GF Value™ of $465.56.
GuruFocus considers LPL Financial Holdings to be Significantly Undervalued.
Key valuation signals for LPLA:
5-Year Yield-on-Cost %: 0.49 (43% below median its 10-year median of 0.86)
GF Value™: $465.56 vs. price of $316.86 (31.9% below fair value)
Industry Position: 84% below the Capital Markets median (#335 of 363)
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.
81GF Score
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