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, 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 to peers, Ameriprise Financial, Inc. has a higher P/E of 48.17, while State Street Corp. shows a lower P/E of 16.53, highlighting a mixed competitive landscape.
Recent stock performance shows LPL Financial Holdings outpacing the S&P 500, with a 1-year return of 33.36% compared to the S&P 500's 19.89%. This strong performance may suggest that the market still has confidence in the company's growth potential despite its current fair valuation.