Is The Charles Schwab Corp. overvalued or undervalued?

As of 31 October 2025, the valuation grade for The Charles Schwab Corp. moved from fair to attractive, indicating a shift towards a more favorable assessment. The company appears undervalued, particularly when considering its P/E ratio of 27, a PEG ratio of 0.86, and an EV to EBITDA ratio of 9.56. In comparison to peers, Morgan Stanley has a P/E of 18.52, while The Goldman Sachs Group, Inc. shows a much higher P/E of 41.63, reinforcing the attractiveness of Schwab's valuation.
Additionally, the company's recent performance has outpaced the S&P 500, with a year-to-date return of 27.71% compared to the index's 16.30%. Over the past year, Schwab's stock has returned 33.45%, significantly higher than the S&P 500's 19.89%, further supporting the notion that it is undervalued relative to its growth potential.