Is LPL Financial Holdings, Inc. overvalued or undervalued?

As of 31 October 2025, the valuation grade for LPL Financial Holdings, Inc. moved from attractive to fair. The company appears to be fairly valued based on its current metrics. Key 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 ratio of 16.53, while Cboe Global Markets, Inc. stands at 32.12, indicating that LPL Financial is trading at a premium relative to some peers.
Despite the recent downgrade in valuation, LPL Financial has demonstrated strong performance, with a one-year stock return of 34.95%, significantly outpacing the S&P 500's return of 19.89% over the same period. This performance highlights the company's resilience, even as it is currently considered fairly valued.