Stock fact sheet · data as of
LPL Financial Holdings Inc. (LPLA): fair value, margin of safety and Wheel Score
Ticker symbol LPLA · Financial Services · Financial - Capital Markets · United States · Growth Quality
Is LPLA undervalued?
At 311.48 (close of 5 Nov 2026), LPLA trades 37% below the GLS average fair value of 496.45. That average comes from 9 models run on the latest filings, and 6 of them land above the current price. Margins of safety over 30% are the exception rather than the rule across the ~7,400 stocks we value each night, so the number earns LPL Financial Holdings Inc. the full Value points in the Wheel Score - and a closer look at what the market is pricing in.
There is a wide gap between DDM (17.66) and GLS Growth (1,084.14). 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, LPLA is clearly faster-growing than it is cheap, so the nightly engine files it under Growth (value score 42, growth score 87, out of 100). It also carries the Quality tag (Quality = moat 7.5+ out of 10 and Piotroski 7+).
Nine valuation models for LPLA
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 | 909.46 | +192% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 171.59 | -45% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 866.93 | +178% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 368.05 | +18% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 1,084.14 | +248% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 408.00 | +31% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 445.43 | +43% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | 17.66 | -94% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 196.77 | -37% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -55.66 | -118% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 407.60 | +31% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
LPL Financial Holdings 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 9.2/10 puts LPLA 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 moderate - ROIC 6.8%, ROE 16.1%, ROA 4.7% - with debt at 1.36 times equity and a free-cash-flow yield of 3.6%.
The dividend yield is 0.39% with a payout ratio of 7% - a small yield that leaves most of the earnings in the business. Revenue comes mainly from Money Market Cash Sweep Revenue 56%, Asset based Revenue 31%, Recordkeeping Revenues 7% (quarter Q4 FY2018).
Institutional ownership scores 10/10, insider activity 1/10 and Congressional trading 10/10 on the GLS smart-money scales.
| Piotroski F-score | 7 / 9 | ROIC | 6.8% |
|---|---|---|---|
| GLS Moat | 9.2 / 10 | ROE | 16.1% |
| Debt / equity | 1.36 | ROA | 4.7% |
| Free-cash-flow yield | 3.6% | Payout ratio | 7% |
| Institutions | 10 / 10 | Insiders · Congress | 1 · 10 / 10 |
Wheel Score 91: Prime
With a Wheel Score of 91, LPL Financial Holdings Inc. sits in the Prime band. It passes every Wheel Trade Filter - busy options, a real business, below fair value, healthy accounts, debt it can repay, no serious red flags, a premium worth selling, enough size and price - and ranks near the top on the parts: value strong, premium strong, moat strong, health good, red flags strong, option trading fair, stability strong. A high score is a ranking, not a signal: it says nothing about timing, the earnings date or your position size.
Implied volatility is 40% 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 8,340 contracts across all expiries - enough for the wheel at normal size.
Volume runs at 1.3M shares a day on a market cap of $24.3B, with a beta of 0.48 - a low beta, so day-to-day moves are smaller than the market's; the Stability part of the Wheel Score rates that strong.
| 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 | Strong | 37% below fair value | |
| Premium | Strong | implied volatility 40% | |
| Moat | Strong | moat 9.2/10 | |
| Health | Good | Piotroski 7/9 | |
| Red Flags | Strong | Red Flags score 100/100 | |
| Option trading | Fair | 1,246 contracts a day, 8,340 open interest | |
| Stability | Strong | beta 0.48, $24.3B 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
No upcoming earnings date is recorded for LPLA in the nightly calendar. The shares go ex-dividend on 12 Nov 2026 (0.3000 per share), so a covered call sold before then carries a small early-assignment risk around that date.
No analyst upgrades or downgrades were recorded in the last 30 days.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Financial - Capital Markets
The 12 companies below are the closest to LPL Financial Holdings Inc. by market cap within the Financial - Capital Markets 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 |
|---|---|---|---|---|---|
| TW Tradeweb Markets Inc. | 126.99 | 120.03 | -6% | 46Weak | $27.4B |
| NMR Nomura Holdings, Inc. | 9.79 | 17.13 | +43% | 47Weak | $28.6B |
| CRCL Circle Internet Group | 76.12 | 68.34 | -11% | 36Weak | $19.3B |
| FUTU Futu Holdings Limited | 97.92 | 476.82 | +79% | 53Fair | $13.7B |
| BMNP Bitmine Immersion Technologies, Inc. | 98.10 | 1.63 | -5908% | 13No options | $13.0B |
| BMNR Bitmine Immersion Technologies, Inc. | 21.73 | 0.7947 | -2635% | 29Weak | $12.4B |
| EVR Evercore Inc. | 311.03 | 355.42 | +12% | 75Good | $12.0B |
| SF Stifel Financial Corp | 72.94 | 97.45 | +25% | 79Good | $10.9B |
| JEF Jefferies Financial Group Inc. | 51.17 | 141.57 | +64% | 81Good | $9.7B |
| HOOD Robinhood Markets, Inc. | 87.41 | 73.05 | -20% | 39Weak | $69.4B |
| XP XP Inc. | 15.17 | 70.40 | +78% | 55Fair | $7.9B |
| SNEX StoneX Group Inc. | 56.83 | 712.67 | +92% | 79Good | $6.9B |
⚖ Compare LPLA with 7 of them All Financial Services stocks →
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Start free See the Sunday ScanQuestions about LPLA
Is LPLA undervalued right now?
By the GLS models, yes: at 311.48 the stock is 37% below the average fair value of 496.45 (data as of 5 Nov 2026). Whether the discount is deserved is the question to research next.
What is the Wheel Score of LPLA and what does it mean?
LPLA scores 91 out of 100 (Prime). 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 LPLA?
496.45 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 LPL Financial Holdings Inc. report earnings next?
No upcoming earnings date is recorded for LPLA in our calendar as of 5 Nov 2026; the Calendars page is refreshed every morning.
Does LPLA have listed options, and how liquid are they?
Yes. The nightly snapshot found 152 listed contracts with 8,340 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.