Is Franklin Resources, Inc. overvalued or undervalued?

As of 26 July 2024, the valuation grade for Franklin Resources, Inc. moved from fair to very attractive, indicating a significant improvement in its perceived value. The company appears undervalued, supported by a P/E ratio of 12, a price to book value of 0.93, and an EV to EBITDA ratio of 4.87, which are all favorable compared to industry standards.
In comparison to peers, Franklin Resources has a lower P/E ratio than its peer group, which averages around 14.94, and a more attractive EV to EBITDA ratio compared to the industry average of 5.52. Additionally, the company's dividend yield of 5.54% and ROCE of 12.56% further enhance its appeal. While the stock has underperformed the S&P 500 over the last three and five years, it has outperformed the index year-to-date and over the past year, reinforcing the notion that it may be a good investment opportunity at its current valuation.