Is LPL Financial Holdings, Inc. overvalued or undervalued?

As of 3 October 2025, the valuation grade for LPL Financial Holdings, Inc. has moved from attractive to fair, indicating a shift in its perceived value. The company appears to be fairly valued based on its current metrics, with 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's valuation is on the higher end relative to its peers.
Despite its strong performance over the long term, with a 5-year return of 308.10% compared to the S&P 500's 100.56%, recent short-term returns have been negative, with a 1-month decline of 11.67% versus the S&P 500's gain of 4.15%. This divergence suggests that while LPL Financial has historically outperformed, current market conditions may be weighing on its stock price.