Is Franklin Resources, Inc. overvalued or undervalued?

As of 26 July 2024, the valuation grade for Franklin Resources, Inc. has moved from fair to very attractive, indicating a significant positive shift in its valuation outlook. The company is currently considered undervalued. Key ratios include a P/E ratio of 12, a Price to Book Value of 0.93, and an EV to EBITDA of 4.87, which suggest that the stock is trading at a discount compared to its earnings and asset values.
In comparison to its peers, Northern Trust Corp. has a P/E ratio of 11.61 and is rated fair, while Corebridge Financial, Inc. is deemed very expensive with a P/E of 34.60. This positions Franklin Resources favorably within its industry. Additionally, the company's dividend yield of 5.54% and ROCE of 12.56% further enhance its attractiveness to investors. Notably, Franklin Resources has outperformed the S&P 500 on a year-to-date basis, with a return of 12.81% compared to the index's 2.44%.