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LPL Financial Holdings (FRA:7LI) PEG Ratio : 0.89 (As of May. 05, 2024)


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What is LPL Financial Holdings PEG Ratio?

PE Ratio without NRI / 5-Year EBITDA Growth Rate*

PEG Ratio is defined as the PE Ratio without NRI divided by the growth ratio. The growth rate we use is the 5-Year EBITDA growth rate. As of today, LPL Financial Holdings's PE Ratio without NRI is 17.28. LPL Financial Holdings's 5-Year EBITDA growth rate is 19.40%. Therefore, LPL Financial Holdings's PEG Ratio for today is 0.89.

* The 5-Year EBITDA Growth Rate is the 5-year average EBITDA per share growth rate. While the denominator is a percentage, we use the whole number as opposed to the decimal form for the calculation. For example, 5% would be shown as 5 as opposed to 0.05. If it's smaller than or equal to 0, then the PEG Ratio is not calculated.


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

FRA:7LI' s PEG Ratio Range Over the Past 10 Years
Min: 0.28   Med: 1.02   Max: 15.06
Current: 0.91


During the past 13 years, LPL Financial Holdings's highest PEG Ratio was 15.06. The lowest was 0.28. And the median was 1.02.


FRA:7LI's PEG Ratio is ranked better than
65.03% of 306 companies
in the Capital Markets industry
Industry Median: 1.5 vs FRA:7LI: 0.91

Peter Lynch thinks a company with a P/E ratio equal to its growth rate is fairly valued.


LPL Financial Holdings PEG Ratio Historical Data

The historical data trend for LPL Financial Holdings's PEG 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 PEG Ratio Chart

LPL Financial Holdings Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
PEG Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.57 0.71 1.27 1.38 0.79

LPL Financial Holdings Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
PEG Ratio Get a 7-Day Free Trial 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 1.02 0.87 0.84 0.79 0.87

Competitive Comparison of LPL Financial Holdings's PEG Ratio

For the Capital Markets subindustry, LPL Financial Holdings's PEG Ratio, along with its competitors' market caps and PEG 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's PEG Ratio Distribution in the Capital Markets Industry

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

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



LPL Financial Holdings PEG Ratio Calculation

PEG Ratio is defined as the PE Ratio without NRI divided by the growth ratio. The ratio we use is the 5-Year EBITDA growth rate.

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

PEG Ratio=PE Ratio without NRI/5-Year EBITDA Growth Rate*
=17.283777137638/19.40
=0.89

* 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: The 5-Year EBITDA Growth Rate is the 5-year average EBITDA per share growth rate. While the denominator is a percentage, we use the whole number as opposed to the decimal form for the calculation. For example, 5% would be shown as 5 as opposed to 0.05. If it's smaller than or equal to 0, then the PEG Ratio is not calculated.


LPL Financial Holdings  (FRA:7LI) PEG Ratio Explanation

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


LPL Financial Holdings PEG Ratio Related Terms

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


LPL Financial Holdings (FRA:7LI) Business Description

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. As of the end of 2022, the company had nearly 20,000 advisors on its platform managing over $1 trillion of client assets.

LPL Financial Holdings (FRA:7LI) Headlines

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