Stock fact sheet · data as of
Houlihan Lokey, Inc. (HLI): fair value, margin of safety and Wheel Score
Ticker symbol HLI · Financial Services · Investment - Banking & Investment Services · United States · Class A common stock · Growth Quality
HLI is Houlihan Lokey, Inc.'s Class A common stock. The classes own the same business, share the same earnings report and trade within a few cents of each other; what differs is mainly the vote each share carries - the company's annual report sets out the voting rights.
Is HLI undervalued?
Houlihan Lokey, Inc. (HLI) closed at 154.06 on 5 Nov 2026, close to the GLS average fair value of 154.34 (exactly at fair value). 4 of the 9 models that produced a number sit above the price, 5 below - the market and our models roughly agree. With little margin of safety either way, the case for or against the stock rests on the quality numbers and the option premium rather than on price.
There is a wide gap between DDM (38.26) and GLS Growth (370.80). 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.
Ranked against every other company we cover, HLI is clearly faster-growing than it is cheap, so the nightly engine files it under Growth (value score 28, growth score 72, out of 100). It also carries the Quality tag (Quality = moat 7.5+ out of 10 and Piotroski 7+).
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 | 119.08 | -23% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 68.71 | -55% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 228.15 | +48% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 90.93 | -41% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 370.80 | +141% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 166.90 | +8% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 238.91 | +55% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | 38.26 | -75% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 67.30 | -56% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | 0.0468 | -100% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 159.80 | +4% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
Houlihan Lokey, Inc. scores 7 of 9 on the Piotroski F-score, the nine yes/no tests of profitability, leverage and efficiency on the latest annual accounts - a strong reading that passes the "Piotroski 6 or more" Wheel Trade Filter with room to spare. A GLS Moat score of 9.1/10 puts HLI among the more durable businesses we track: over up to ten years its returns on capital have stayed high, its margins steady and its balance sheet sound.
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 3.8%.
The dividend yield is 1.69% at a payout ratio of 46%; 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 70%, Financial Restructuring 17%, Financial Advisory Services 13% (quarter Q2 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 | 7 / 9 | ROIC | 15.0% |
|---|---|---|---|
| GLS Moat | 9.1 / 10 | ROE | 18.2% |
| Debt / equity | 0.21 | ROA | 9.9% |
| Free-cash-flow yield | 3.8% | Payout ratio | 46% |
| Institutions | 10 / 10 | Insiders · Congress | 3 · 7 / 10 |
Wheel Score 70: Good
With a Wheel Score of 70 - the Good band - Houlihan Lokey, Inc. passes all 9 Wheel Trade Filters. How it ranks: value weak, premium strong, moat strong, health good, red flags good, option trading weak, stability good. Value (weak) is the part keeping it out of the Prime band.
Implied volatility is 36% on the near-the-money contracts 20-60 days out - inside the 35-60% sweet spot the Wheel Score rewards most: enough premium to be worth selling, not so much that the risk is unpaid. Chain open interest is 2,164 contracts across all expiries - enough for the wheel at normal size.
Volume runs at 1.5M shares a day on a market cap of $10.7B, with a beta of 0.91; the Stability part of the Wheel Score rates that good.
| Filter | Wheel Trade Filter | Result | Detail |
|---|---|---|---|
| 1 | Options that actually trade | Passes | Listed options with 1,000+ contracts of open interest and 100+ traded a day |
| 2 | A real business, not a gamble | Passes | Profitable over the last twelve months - not a speculative stock, fund or note |
| 3 | Below fair value | Passes | Trading below the nine-model average fair value (margin of safety above 0) |
| 4 | Financially healthy | Passes | Piotroski F-score 6 or more out of 9 (a company with no score on file passes) |
| 5 | Can repay its debt | Passes | Long-term debt repaid from 3 years of operating cash flow or less (6 for real estate and utilities; banks and insurers are not judged on it) |
| 6 | No serious red flags | Passes | Red Flags score 60 or more out of 100 (earnings, margins, debt, analysts, filings and price checked the same way for every stock) |
| 7 | A premium worth selling | Passes | Implied volatility 25-80% (enough premium, not a lottery ticket) |
| 8 | Big enough | Passes | Market cap $1 billion or more |
| 9 | Not a penny stock | Passes | Share price $5 or more |
| How it ranks | Rating | From | |
|---|---|---|---|
| Value | Weak | 0% below fair value | |
| Premium | Strong | implied volatility 36% | |
| Moat | Strong | moat 9.1/10 | |
| Health | Good | Piotroski 7/9 | |
| Red Flags | Good | Red Flags score 82/100 | |
| Option trading | Weak | 162 contracts a day, 2,164 open interest | |
| Stability | Good | beta 0.91, $10.7B company |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls: a stock must pass all 9 Wheel Trade Filters to score 70, and the score then ranks the ones that pass; the Sunday Scan is the top 10. It is updated nightly and is not a recommendation. How the Wheel Score works · the walkthrough lesson shows how it fits into a trade, start to finish.
Upcoming events
The next earnings report is due on 27 Jan 2027, 83 days away - outside the window of a 30-45-day put sold today. The shares go ex-dividend on 1 Dec 2026 (0.7000 per share), so a covered call sold before then carries a small early-assignment risk around that date.
Analysts upgraded HLI 1 time in the last 30 days with no downgrades; the latest action was an upgrade by Citigroup on 9 Oct 2026.
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 | 70.22 | 142.03 | +51% | 46Weak | $5.0B |
| PJT PJT Partners Inc. | 158.12 | 260.74 | +39% | 52Fair | $4.0B |
| BNY Bank of New York Mellon Corp | 152.72 | 228.62 | +33% | 77Good | $102.8B |
| IBKR Interactive Brokers Group, Inc. | 77.88 | 129.70 | +40% | 90Prime | $136.9B |
| BRBI BRBI BR Partners S.A. ADSs | 7.19 | 22.65 | +68% | 26No options | $188M |
| CURN Currency Exchange International, Corp. | 23.89 | 37.02 | +35% | 35No options | $141M |
| STEX Streamex Corp. | 0.3610 | - | - | 5Weak | $42M |
| AMTD AMTD IDEA Group | 13.56 | 67,412.93 | +100% | 33No options | $3M |
⚖ Compare HLI with 7 of them All Financial Services stocks →
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Start free See the Sunday ScanQuestions about HLI
What kind of share is HLI?
HLI is Houlihan Lokey, Inc.'s Class A common stock. The classes own the same business, share the same earnings report and trade within a few cents of each other; what differs is mainly the vote each share carries - the company's annual report sets out the voting rights.
Is HLI undervalued right now?
Not meaningfully: at 154.06 the stock trades within a few percent of the GLS average fair value of 154.34 (exactly at fair value, data as of 5 Nov 2026).
What is the Wheel Score of HLI and what does it mean?
HLI scores 70 out of 100 (Good). The Wheel Score ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned - in two parts: the 9 pass/fail Wheel Trade Filters (busy options, a real business, below fair value, Piotroski 6 or more, debt it can repay, a Red Flags score of 60 or more, implied volatility of 25-80%, a $1 billion company, $5 a share) and a ranking of how strongly a stock passes on value, premium, moat, health, red flags, option trading and stability. A stock that fails any filter stays under 70; 70-84 is Good, 85 and above is Prime. The Sunday Scan is the top 10 that pass, sorted by Wheel Score.
What is the GLS fair value for HLI?
154.34 per share as of 5 Nov 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 27 Jan 2027, 83 days from the data date of 5 Nov 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 88 listed contracts with 2,164 open interest across all expiries and implied volatility of 36% 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.