Stock fact sheet · data as of
Houlihan Lokey, Inc. (HLI): fair value, margin of safety and Wheel Score
Financial Services · Investment - Banking & Investment Services · United States · High Growth
Is HLI undervalued?
Houlihan Lokey, Inc. (HLI) closed at 128.51 on 16 Oct 2026. The GLS average fair value - the simple average of the 9 valuation models that produced a positive number - is 165.16, so the price sits 22% below it. 4 of the 9 models value the shares above the current price. A margin of safety between 10% and 30% is where most of the Sunday Scan candidates come from.
There is a wide gap between DDM (38.26) and GLS Growth (373.92). When the models are this far apart the "fair value" is really a range, and the margin of safety above should be read with that range in mind.
The nightly engine files HLI under High Growth: revenue and earnings growing fast enough that the growth-based models carry the valuation.
Nine valuation models for HLI
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | 111.08 | -14% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 68.26 | -47% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 247.07 | +92% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 100.38 | -22% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 373.92 | +191% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 191.07 | +49% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 288.58 | +125% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | 38.26 | -70% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 67.86 | -47% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | 0.0465 | -100% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 159.80 | +24% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
Houlihan Lokey, Inc. scores only 4 of 9 on the Piotroski F-score, which fails the Sunday Scan's "6 or more" rule. A reading this low means several of the basic tests - positive earnings, positive operating cash flow, falling debt, no new share issuance - are not met. On durability HLI scores 6.7/10 on the GLS Moat - a middle reading; the Scorecard on the Quote page's Financials tab shows which ten-year lines are steady and which are not.
Returns on capital are high - ROIC 15.0%, ROE 18.2%, ROA 9.9% - with debt at 0.21 times equity and a free-cash-flow yield of 5.4%.
The dividend yield is 2.02% at a payout ratio of 45%; for a wheel trader holding assigned shares the dividend adds to the covered-call premium, and the ex-dividend date is worth knowing before a call is sold. Revenue comes mainly from Corporate Finance 59%, Financial Restructuring 23%, Financial Advisory Services 17% (quarter Q1 FY2027).
Institutional ownership scores 10/10, insider activity 3/10 and Congressional trading 7/10 on the GLS smart-money scales; the last recorded Congressional buy was on 7 Aug 2026.
| Piotroski F-score | 4 / 9 | ROIC | 15.0% |
|---|---|---|---|
| GLS Moat | 6.7 / 10 | ROE | 18.2% |
| Debt / equity | 0.21 | ROA | 9.9% |
| Free-cash-flow yield | 5.4% | Payout ratio | 45% |
| Institutions | 10 / 10 | Insiders · Congress | 3 · 7 / 10 |
Wheel Score 77: Good
With a Wheel Score of 77 - the Good band - Houlihan Lokey, Inc. clears the Sunday Scan's "70 or higher" rule. The parts: Value 22/25, Health 9/20, Moat 10/15, Premium 20/20, Stability 16/20; Health (9/20) scores lowest.
Implied volatility is 40% on the near-the-money contracts 20-60 days out - inside the 35-60% range the Wheel Score pays full marks for: enough premium to be worth selling, not so much that the risk is unpaid. Chain open interest is thin - 480 contracts across every expiry - so fills at a fair price are not guaranteed; a 30-45-day put may not exist at a usable strike.
Volume runs at 526k shares a day on a market cap of $9.0B, with a beta of 1.01; the Stability part of the Wheel Score gives that 16 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 22 / 25 | 22% margin of safety | |
| Health | 9 / 20 | Piotroski 4/9 | |
| Moat | 10 / 15 | moat 6.7/10 | |
| Premium | 20 / 20 | implied volatility 40% | |
| Stability | 16 / 20 | 526k shares/day, $9.0B cap, beta 1.01 |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.
Upcoming events
Houlihan Lokey, Inc. reports earnings on 28 Oct 2026 (after the close) - inside the 14-day window the Sunday Scan avoids, because a put sold now would carry the report's gap risk.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Investment - Banking & Investment Services
The 8 companies below are the closest to Houlihan Lokey, Inc. by market cap within the Investment - Banking & Investment Services industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| PIPR Piper Sandler Companies | 64.48 | 137.37 | +53% | 83Prime | $4.6B |
| PJT PJT Partners Inc. | 132.18 | 267.10 | +51% | 85Prime | $3.4B |
| BNY Bank of New York Mellon Corp | 142.09 | 142.53 | +0% | 65Good | $96.4B |
| IBKR Interactive Brokers Group, Inc. | 86.03 | 198.39 | +57% | 90Prime | $151.2B |
| BRBI BRBI BR Partners S.A. ADSs | 14.39 | 23.31 | +38% | 31No options | $378M |
| CURN Currency Exchange International, Corp. | 21.85 | 38.49 | +43% | 39No options | $129M |
| STEX Streamex Corp. | 0.4301 | - | - | 34Weak | $50M |
| AMTD AMTD IDEA Group | 0.5675 | 45.83 | +99% | 39No options | $4M |
⚖ Compare HLI with 7 of them All Financial Services stocks →
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Start free See the Sunday ScanQuestions about HLI
Is HLI undervalued right now?
By the GLS models, moderately: at 128.51 the stock trades 22% below the average fair value of 165.16 (data as of 16 Oct 2026).
What is the Wheel Score of HLI and what does it mean?
HLI scores 77 out of 100 (Good). The Wheel Score blends the margin of safety (25 points), Piotroski health (20), the GLS moat (15), the option premium on offer (20) and trading stability (20) into one number that ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned. 80 and above is Prime, 65-79 Good, 50-64 Fair, under 50 Weak.
What is the GLS fair value for HLI?
165.16 per share as of 16 Oct 2026 - the simple average of the 9 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does Houlihan Lokey, Inc. report earnings next?
The next earnings report is due on 28 Oct 2026 (after the close), 12 days from the data date of 16 Oct 2026. The Calendars page lists every upcoming report with its time of day.
Does HLI have listed options, and how liquid are they?
Yes. The nightly snapshot found 250 listed contracts with 480 open interest across all expiries and implied volatility of 40% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.