SCHW Fair Value Estimate
$127.8536.3% undervalued
Blended fair value estimate based on DCF, Graham Number, and earnings-based models.
Charles Schwab Corp
Exchange: NYSESector: Financial ServicesIndustry: Capital Markets
The Charles Schwab Corporation is a leading provider of financial services, with 37.4 million active brokerage accounts, 5.6 million workplace plan participant accounts, 2.1 million banking accounts, and $10.35 trillion in client assets as of May 31, 2025. Through its operating subsidiaries, the company provides a full range of wealth management, securities brokerage, banking, asset management, custody, and financial advisory services to individual investors and independent investment advisors. Its broker-dealer subsidiary, Charles Schwab & Co., Inc. (member SIPC, https://www.sipc.org ), and its affiliates offer a complete range of investment services and products including an extensive selection of mutual funds; financial planning and investment advice; retirement plan and equity compensation plan services; referrals to independent, fee-based investment advisors; and custodial, operational and trading support for independent, fee-based investment advisors through Schwab Advisor Services. Its primary banking subsidiary, Charles Schwab Bank, SSB (member FDIC and an Equal Housing Lender), provides banking and lending services and products.
Did you know?
Holds 2.9x more cash than debt — a strong balance sheet.
Current Price
$93.77
+1.53%GoodMoat Value
$127.85
36.3% undervaluedProfile
Valuation (TTM)
Market Cap$166.62B
P/E19.80
EV$111.34B
P/B3.37
Shares Out1.78B
P/Sales6.97
Revenue$23.92B
EV/EBITDA8.47
Charles Schwab Corp (SCHW) Valuation
GoodMoat Analysis
The current price of $94.48 offers a favourable margin of safety of approximately 26% compared to the GoodMoat Target of $127.85, placing it in the 'Favourable' valuation band. The P/E of 20.1x is reasonable relative to the sector and the company's strong profitability and growth. This suggests the stock is not expensive relative to its quality and offers a meaningful discount to estimated intrinsic value.
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Based on the GoodMoat Investment Framework, the valuation assessment for Charles Schwab is favourable. The primary tool is the Discounted Cash Flow (DCF) model, which yields a GoodMoat Target of $127.85. At the current price of $94.48, this implies a margin of safety of approximately 26%. According to the framework's MoS bands, a margin between 20% and 40% is classified as 'Favourable,' indicating an attractive price for a value investor. On a relative basis, the forward P/E of 20.1x appears reasonable. While a direct sector average comparison is not provided, this multiple must be contextualized against the company's 18.9% YoY revenue growth and high profitability metrics, including a 37% profit margin and 17.9% ROE. For a financial firm with this growth and return profile, a P/E in the low 20s is not indicative of an extreme valuation. The FCF yield of 5.2% (or a P/FCF of ~19x) further supports a valuation that is not stretched. The analysis suggests the stock is priced at a level that provides a sufficient cushion against uncertainty, making the current valuation favourable when integrated with a strong business quality assessment.
SCHW Valuation Metrics
FCF$8.76B
FCF Growth Rate0.28%
EPS Growth (CAGR)0.28%
WACC10.00%
Fair Value Models
Graham Number, PEG-based, and Earnings-based models
View Fair Value →SCHW Valuation & Fair Value Analysis
Charles Schwab Corp (SCHW) valuation analysis using multiple fair value methodologies. GoodMoat calculates a blended fair value target using discounted cash flow (DCF) analysis, the Graham Number, and earnings-based valuation models.
The GoodMoat Fair Value target for Charles Schwab Corp is $127.85. The current stock price is $93.77, suggesting the stock is 36.3% undervalued.
The price-to-earnings (P/E) ratio is 19.80. Price-to-book ratio is 3.37. Price-to-sales ratio is 6.97. Enterprise value to EBITDA is 8.47. PEG ratio is 0.47.
GoodMoat's valuation models include the Graham Number (based on EPS and book value), an earnings-based model (discounted future EPS), and a PEG-adjusted valuation. The three models are averaged to produce a blended fair value estimate. Use these tools alongside the DCF calculator and reverse DCF to form a comprehensive view of Charles Schwab Corp's intrinsic value.