Stock fact sheet · data as of
LPL Financial Holdings Inc. (LPLA): fair value, margin of safety and Wheel Score
Financial Services · Financial - Capital Markets · United States · High Growth
Is LPLA undervalued?
At 327.56 (close of 16 Oct 2026), LPLA trades 20% under the GLS average fair value of 408.01. 3 of the 7 models that produced a value land above the price. A discount of this size counts as a positive margin of safety in every GLS screen; whether it is enough depends on the rest of the picture - the health score, the moat and the option premium below.
There is a wide gap between DDM (17.66) and DCF (875.01). 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 LPLA under High Growth: revenue and earnings growing fast enough that the growth-based models carry the valuation.
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 | 875.01 | +167% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 142.84 | -56% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 637.30 | +95% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 272.37 | -17% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 770.98 | +135% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | - | - | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10%; no value tonight |
| Payback Time | - | - | Eight years of compounded free cash flow: the price at which the business pays for itself; no value tonight |
| DDM | 17.66 | -95% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 139.93 | -57% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -55.05 | -117% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 408.44 | +25% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
LPL Financial Holdings 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 LPLA scores 5.0/10 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 moderate - ROIC 6.8%, ROE 16.1%, ROA 4.7% - with debt at 1.36 times equity and negative free cash flow.
The dividend yield is 0.37% with a payout ratio of 10% - 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 | 4 / 9 | ROIC | 6.8% |
|---|---|---|---|
| GLS Moat | 5.0 / 10 | ROE | 16.1% |
| Debt / equity | 1.36 | ROA | 4.7% |
| Free-cash-flow yield | -4.1% | Payout ratio | 10% |
| Institutions | 10 / 10 | Insiders · Congress | 1 · 10 / 10 |
Wheel Score 75: Good
With a Wheel Score of 75 - the Good band - LPL Financial Holdings Inc. clears the Sunday Scan's "70 or higher" rule. The parts: Value 21/25, Health 9/20, Moat 8/15, Premium 20/20, Stability 18/20; Health (9/20) scores lowest.
Implied volatility is 45% 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 10,749 contracts across all expiries - enough for the wheel at normal size.
Volume runs at 957k shares a day on a market cap of $25.8B, 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 gives that 18 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 21 / 25 | 20% margin of safety | |
| Health | 9 / 20 | Piotroski 4/9 | |
| Moat | 8 / 15 | moat 5.0/10 | |
| Premium | 20 / 20 | implied volatility 45% | |
| Stability | 18 / 20 | 957k shares/day, $25.8B cap, beta 0.48 |
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
LPL Financial Holdings Inc. reports earnings on 27 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 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 |
|---|---|---|---|---|---|
| NMR Nomura Holdings, Inc. | 9.28 | 2,645.86 | +100% | 80Prime | $27.7B |
| TW Tradeweb Markets Inc. | 110.68 | 116.66 | +5% | 83Prime | $23.9B |
| CRCL Circle Internet Group | 86.97 | 66.58 | -31% | 55Fair | $22.1B |
| XP XP Inc. | 30.49 | 162.66 | +81% | 83Prime | $15.8B |
| FUTU Futu Holdings Limited | 109.80 | 1,064.51 | +90% | 87Prime | $15.4B |
| BMNR Bitmine Immersion Technologies, Inc. | 23.36 | 0.8043 | -2804% | 45Weak | $13.3B |
| BMNP Bitmine Immersion Technologies, Inc. | 98.88 | 1.77 | -5494% | 23No options | $12.7B |
| VIRT Virtu Financial, Inc. | 55.48 | 129.35 | +57% | 81Prime | $12.1B |
| SF Stifel Financial Corp | 67.80 | 79.72 | +15% | 82Prime | $10.2B |
| EVR Evercore Inc. | 256.62 | 355.06 | +28% | 82Prime | $9.9B |
| HUT Hut 8 Corp. | 76.09 | - | - | 45Weak | $9.4B |
| JEF Jefferies Financial Group Inc. | 44.90 | 142.63 | +69% | 87Prime | $8.5B |
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Start free See the Sunday ScanQuestions about LPLA
Is LPLA undervalued right now?
By the GLS models, moderately: at 327.56 the stock trades 20% below the average fair value of 408.01 (data as of 16 Oct 2026).
What is the Wheel Score of LPLA and what does it mean?
LPLA scores 75 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 LPLA?
408.01 per share as of 16 Oct 2026 - the simple average of the 7 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?
The next earnings report is due on 27 Oct 2026 (after the close), 11 days from the data date of 16 Oct 2026. The Calendars page lists every upcoming report with its time of day.
Does LPLA have listed options, and how liquid are they?
Yes. The nightly snapshot found 558 listed contracts with 10,749 open interest across all expiries and implied volatility of 45% 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.