Is LPL Financial Holdings, Inc. overvalued or undervalued?

As of 31 October 2025, the valuation grade for LPL Financial Holdings, Inc. has moved from attractive to fair. The company appears to be fairly valued based on its current metrics. 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, Ameriprise Financial, Inc. has a higher P/E ratio of 48.17, while State Street Corp. shows a lower P/E of 16.53, indicating a range of valuations within the industry.
LPL Financial has outperformed the S&P 500 over the past year with a return of 33.71% compared to the index's 19.89%, but it has lagged behind in the three-year period, returning 47.59% versus the S&P 500's 76.66%. Overall, the current valuation suggests that LPL Financial is fairly valued relative to its peers and market performance.