LPL Financial Holdings (LPL Financial Holdings) GF Value Rank

: 6 (As of Today)

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LPL Financial Holdings has the GF Value Rank of 6.

The GF Value Rank is determined by the price-to-GF-Value (P/GF Value) ratio, a proprietary metric calculated based on historical multiples along with an adjustment factor based on a company's past returns and growth and future estimates of the business' performance.

GuruFocus found that for valuation, we cannot simply give stocks a better GF Value rank simply because they have a lower P/GF Value ratio. Backtesting shows that over the long term, the two worst-performing groups are the most expensive group (with the highest P/GF Value ratio) and the least expensive group (with the lowest P/GF Value ratio).

We can understand why the most expensive group underperforms. We were initially puzzled by the underperformance of the least expensive group, but we realized there is a reason why some stocks are super cheap. If they look too undervalued, it is often because the businesses behind them are poor quality. The market realized this and gave them low valuations. In a way, the market is efficient.

After multiple backtesting analyses, we granted the stocks in third-cheapest percentile the highest GF Value rank, as they have performed the best over a full market cycle. Stock performance is actually not as sensitive to valuation as it is to growth and profitability. On average, the companies in the 20%-50% valuation groups have similar performances. Therefore, we should avoid the most expensive and the least expensive stocks. We can be more tolerant of valuation.

Please click GF Score to see more details on the GF Score's 5 Key Aspects of Analysis.

Competitive Comparison

For the Capital Markets subindustry, LPL Financial Holdings's GF Value Rank, along with its competitors' market caps and GF Value Rank 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 GF Value Rank Distribution

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

* The bar in red indicates where LPL Financial Holdings's GF Value Rank falls into.

LPL Financial Holdings GF Value Rank Related Terms

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LPL Financial Holdings (LPL Financial Holdings) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Capital Markets » LPL Financial Holdings Inc (NAS:LPLA) » Definitions » GF Value Rank

Comparable Companies

Traded in Other Exchanges

7LI:Germany

Address

4707 Executive Drive, San Diego, CA, USA, 92121

Website

https://www.lpl.com

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.

Executives

Sallie R. Larsen	officer: MD, Chief Human Cap. Officer	ONE BEACON STREET, 22ND FLOOR, BOSTON MA 02018
Aneri Jambusaria	officer: Managing Director	C/O LPL FINANCIAL HOLDINGS INC., 4707 EXECUTIVE DRIVE, SAN DIEGO CA 92121
Dan H. Arnold	officer: MD & Division President, FIS	C/O LPL INVESTMENT HOLDINGS INC., ONE BEACON STREET, BOSTON MA 02108
Richard Steinmeier	officer: Managing Director	C/O LPL FINANCIAL HOLDINGS, INC., 75 STATE STREET, 22ND FLOOR, BOSTON MA 02109
Althea Brown	officer: Managing Director	C/O LPL FINANCIAL HOLDINGS INC., 4707 EXECUTIVE DRIVE, SAN DIEGO CA 92121
Matthew Enyedi	officer: Managing Director	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
Richard P Schifter	director	301 COMMERCE STREET, SUITE 3300, FORT WORTH TX 76102
Michelle Oroschakoff	officer: MD, Chief Risk Officer	75 STATE STREET, 24TH FLOOR, BOSTON MA 02109
Matthew J Audette	officer: Chief Financial Officer	C/O DAVIS POLK & WARDWELL, 450 LEXINGTON AVENUE, NEW YORK NY 10017
Albert J Ko	director	C/O LPL FINANCIAL HOLDINGS INC., 4707 EXECUTIVE DRIVE, SAN DIEGO CA 92121
Brent Simonich	officer: EVP, CAO and Treasurer	C/O E*TRADE FINANCIAL CORP., 11 TIMES SQUARE, 32ND FLOOR, NEW YORK NY 10036-9992
Kabir Sethi	officer: Managing Director	C/O LPL FINANCIAL, 4707 EXECUTIVE DRIVE, SAN DIEGO CA 92121
Edward Fandrey	officer: Managing Director	C/O LPL FINANCIAL, 4707 EXECUTIVE DRIVE, SAN DIEGO CA 92121
George Burton White	officer: MD, Chief Investment Officer	ONE BEACON STREET, 22ND FLOOR, BOSTON MA 02108