LPL Financial Holdings
Financial ratios & Valuation

Forward Multiples (2025 – 2027)

202520262027
Price/Earnings ratio
20.5916.2713.89
Price/Sales ratio
2.091.881.54
Earnings per Share (EPS)
$16.89$21.38$25.04

Historical Multiples (2014 – 2023)

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 TTM Median
Valuation Ratios
Price/Earnings ratio
24.9824.0716.3421.5212.2413.6017.4727.8520.3916.3924.6812.24
Price/Sales ratio
1.020.962.413.552.953.724.135.445.631.732.153.72
Price/Book Value ratio
4.575.673.825.325.527.436.287.667.958.408.955.52
Price/Cash Flow ratio
19.1514.5411.4111.589.2512.2010.4528.268.8634.1041.449.25
Price/Free Cash Flow ratio
33.2919.6421.3029.9712.7816.2913.0154.0010.52159.91258.7412.78
Price/Earnings Growth ratio
10.86-42.850.760.920.130.37-1.44-7.900.240.523.200.13
Dividend Yield
2.14%2.35%2.84%1.75%1.64%1.08%0.95%0.62%0.46%0.52%0.36%1.08%
Profitability Indicator Ratios
Gross Profit Margin
86.89%85.12%51.09%54.14%57.85%59.28%54.94%57.46%63.66%30.35%32.36%59.28%
Operating Profit Margin
-5.00%-6.76%-18.54%-11.73%39.37%36.32%31.34%25.58%40.40%16.23%17.28%36.32%
Pretax Profit Margin
6.81%6.70%22.92%25.18%32.51%36.32%31.34%25.58%36.28%14.37%11.68%36.32%
Net Profit Margin
4.11%4.00%14.78%16.49%24.11%27.41%23.66%19.56%27.60%10.60%8.73%27.41%
Effective Tax Rate
39.58%40.26%35.48%34.48%25.84%24.52%24.50%23.52%23.92%26.19%25.26%25.26%
Return on Assets
4.39%3.73%3.96%4.45%8.02%9.52%7.24%5.75%8.91%10.26%8.41%8.02%
Return On Equity
18.32%23.58%23.37%24.75%45.11%54.68%35.94%27.52%39.01%51.28%41.73%54.68%
Return on Capital Employed
-5.42%-6.41%-5.04%-3.21%13.41%14.30%10.88%8.18%13.93%23.93%22.76%13.41%
Liquidity Ratios
Current Ratio
0.280.440.400.400.230.411.14N/AN/AN/A2.050.23
Quick Ratio
15.4218.9222.6121.8210.432.192.27-3.953.591.592.062.19
Cash ratio
6.399.7611.0911.153.950.841.040.761.420.130.460.84
Days of Sales Outstanding
70.4671.81145.21136.24116.09109.3191.79345.8173.60103.90107.48109.31
Days of Inventory outstanding
-8.67-4.48-4.83-6.25-4.59-11.38N/A1.57KN/AN/A-0.71-4.59
Operating Cycle
61.7867.33140.38129.99111.5097.9291.791.91K73.60103.90106.7797.92
Days of Payables Outstanding
423.61446.73546.38585.07513.2770.42784.03177.791.07K151.98128.2170.42
Cash Conversion Cycle
-361.83-379.40-406.00-455.08-401.7727.50-692.241.73K-1.00K-48.08-21.44-401.77
Debt Ratios
Debt Ratio
0.020.480.440.440.430.400.350.350.280.380.370.40
Debt Equity Ratio
0.123.052.642.472.432.341.781.681.251.921.602.34
Long-term Debt to Capitalization
N/A0.750.720.710.700.700.640.620.550.640.610.70
Total Debt to Capitalization
0.110.750.720.710.700.700.640.620.550.650.610.70
Interest Coverage Ratio
N/AN/AN/AN/AN/AN/A0.00N/AN/AN/A8.07N/A
Cash Flow to Debt Ratio
1.920.120.120.180.240.260.330.160.710.120.130.26
Company Equity Multiplier
4.166.315.885.555.625.744.964.784.374.994.305.74
Cash Flow Ratios
Operating Cash Flow / Sales Ratio
0.050.060.210.300.310.300.390.190.630.050.050.30
Free Cash Flow / Operating Cash Flow Ratio
0.570.740.530.380.720.740.800.520.840.210.160.74
Cash Flow Coverage Ratio
1.920.120.120.180.240.260.330.160.710.120.130.26
Short Term Coverage Ratio
1.92N/AN/AN/AN/AN/AN/AN/AN/A1.83N/AN/A
Dividend Payout Ratio
53.70%56.76%46.41%37.79%20.10%14.75%16.73%17.41%9.43%8.64%8.94%14.75%