Is LPL Financial Holdings, Inc. overvalued or undervalued?

As of 31 July 2025, the valuation grade for LPL Financial Holdings, Inc. moved from expensive to fair, indicating a shift in perception regarding its market value. The company appears to be fairly valued at this time. Key valuation ratios include a P/E ratio of 42, a Price to Book Value of 15.99, and an EV to EBITDA of 19.93. In comparison, State Street Corp. has a P/E of 16.53, while Cboe Global Markets, Inc. shows a P/E of 32.12, highlighting that LPL Financial's valuation is relatively higher within its peer group.
Despite recent underperformance against the S&P 500 over shorter time frames, with a 1-week return of -2.40% compared to the index's 1.05%, LPL Financial has outperformed over the longer term, achieving a 1-year return of 60.00% versus the S&P 500's 17.14%. This suggests that while the stock may be fairly valued now, it has demonstrated strong growth potential in the past.