Rankings Financial data & insurance broking Charles Schwab
Charles Schwab
87
15070100
A view of the same findings, not a new score. How it works
In the 70+ zone: a score above 70 with more than 20% upside to the median analyst target.
Biggest deductions
- P/TBV and P/B versus own history−8
- Peers−5
- Interest rate sensitivity and cash sorting−4
Strengths
- Customer growth and net inflow+3
- Dividend and buybacks+2
How the score is built
From 100 to 87, step by step: points off for the business, the price and the cracks, back for documented strengths, then three data adjustments.
Start
Score
Hover or select a step to see what drove it. Steps with findings open them below.
Key numbers
As of 2 Nov 2026. Analyst targets tend to be optimistic; read upside as a hint, not a forecast.
- Price
- 88.71 USD
- Median analyst target
- 118.50 USD
- Upside to median
- +33.6%
- Analysts
- 24
- Target range
- 82.00 – 147.00 USD
- 52-week change
- −6%
- P/E (trailing)
- 15.2
- Forward P/E
- 11.9
- PEG
- 0.58
Findings
Every deduction and every plus, with its source. Open a step to read them.
Business
Is the company getting stronger, not just bigger? · 2 findings−5 of −30
- −3Quality of earningsNet interest income makes up 12.7 of USD 26.0bn in revenue (49%) and stems from the spread on clients' cash holdings (sweep cash USD 485.7bn); earnings follow client cash behaviour and interest rates more than own fees.
- −2Quality of growthEPS +48% (TTM) is driven largely by normalisation after 2023: FHLB borrowings reduced from USD 9.0bn to 0.5bn and the net interest margin up from 2.66% to 3.00%. A one-off funding improvement, not structural growth.
Price
Today's multiples against the company's own history and its peers. · 3 findings−14 of −35
- −8P/TBV and P/B versus own historyP/TBV 6.86 (price 96.70 / tangible book value USD 14.10) is at the top of 5.98-7.41 in 2021, 2024 and 2025 (2022-23 are distorted by AOCI losses) and far above the level before the TD Ameritrade purchase, when P/B was 2.7-3.7 in 2013-2019 with almost no goodwill. Even adjusted for AOCI (-USD 10.6bn), P/TBV is about 4.8, above the entire period before 2020. P/B 3.80 is at the top of 1.78-4.25 since 2012 (only 2022 higher, because AOCI losses shrank equity).
- −1P/E versus own historyTrailing P/E of 17.6 and forward of 13.3 are below 15.3-29.0 in 2013-2025, but the multiple is calculated on earnings at the top of the rate cycle (interest margin 3.00% versus 2.66% a year earlier, FHLB loans almost repaid) and record trading; the historical P/Es were measured in low-rate years with squeezed net interest income, so the discount is less real than it looks.
- −5PeersP/TBV 6.86 is about double Morgan Stanley (3.57), JPMorgan (2.97) and Goldman Sachs (2.70), even though half of revenue is net interest income as at a bank, and the large banks trade at 1.3-3.0 times tangible equity. Forward P/E 13.3 is in line with MS (14.9) and LPL (14.8), so the premium sits in the balance sheet, not in earnings.
Cracks
Cash flow, customers, debt, insiders, guidance and what sits behind the headline numbers. · 3 findings−6 of −35
- −4Interest rate sensitivity and cash sortingTier 1 leverage of 8.7%, but only 6.8% adjusted for unrealised securities losses (AOCI); bank deposits -1% in the quarter and bank deposit balances -14% in a year. Rising rates (Fed rate hike in Sep 2026) could again move customers' cash into money market funds, as in 2023 when EPS fell 27%.
- −1LawsuitsClass action over the sweep programmes (including an allegation that sweep revenue financed the TD Ameritrade acquisition); the industry is under scrutiny from the SEC and FINRA, and Schwab paid 187m USD in 2022 for robo-advisor sweeps.
- −1Dependence on market activityTrading revenue of 4.4bn USD (17%) and record client assets of 13.1tn USD presuppose continued high activity and rising equity markets.
Plus
Only documented strengths. · 2 findings+5 of +15
- +3Customer growth and net inflowCore net new assets USD 119.8bn in Q2 (+49%), a record in June (62.7bn, 5.8% annualised organic growth) and 1.39m new accounts (+26%).
- +2Dividend and buybacksBuybacks of USD 1.0bn in Q2 (share count -3.4% in a year) and dividend +19%; total distribution (about USD 7.8bn) is below net income of about USD 9.5bn; ROTCE 44%.
Caveats
What the score does not capture, or where the data is weak.
Re-scored more strictly 11 Oct 2026 (P/TBV against own history). Q3 report and Fall Business Update 15 Oct 2026 (before the open); the score predates the report. Broker with a large bank: FCF is not meaningful, valuation on P/TBV, P/B and P/E. P/TBV is high due to goodwill from TD Ameritrade and AOCI losses; the history before 2020 is P/B (goodwill was small then), and P/TBV for 2022–23 is distorted by AOCI. The Fed raised rates in Sep 2026, which increases the risk of cash sorting. The loan book (primarily securities-backed credit lines and mortgages) and commercial real estate are not a material credit risk and have not been scored
Also in Financial data & insurance broking
The highest scores in the same industry.
