The Charles Schwab
Financial ratios & Valuation

Forward Multiples (2025 – 2028)

2025202620272028
Price/Earnings ratio
24.0020.1718.3217.75
Price/Sales ratio
8.027.397.106.67
Earnings per Share (EPS)
$3.99$4.75$5.23$5.4

Historical Multiples (2014 – 2023)

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 TTM Median
Valuation Ratios
Price/Earnings ratio
29.7729.9227.6629.2215.9616.8322.9727.1021.8424.7626.5515.96
Price/Sales ratio
6.496.796.997.985.525.816.488.567.556.666.825.52
Price/Book Value ratio
3.333.233.183.712.702.871.352.824.283.062.892.70
Price/Cash Flow ratio
16.7534.7519.6354.464.496.6811.0674.9276.296.405.144.49
Price/Free Cash Flow ratio
20.1944.1822.5679.704.707.2312.18132.02144.516.645.084.70
Price/Earnings Growth ratio
1.373.350.921.260.334.86-1.100.810.91-0.895.120.33
Dividend Yield
0.94%0.89%0.92%0.86%1.40%1.70%1.68%1.14%1.34%1.81%1.33%1.70%
Profitability Indicator Ratios
Gross Profit Margin
100%100%89.32%88.03%84.47%80.52%86.51%87.89%84.71%54.20%57.01%80.52%
Operating Profit Margin
36.62%37.85%42.33%46.32%53.48%45.21%36.78%41.64%52.65%52.68%-2.33%45.21%
Pretax Profit Margin
34.93%35.78%40.05%42.35%45.02%45.21%36.78%41.64%45.21%33.85%33.78%45.21%
Net Profit Margin
21.82%22.71%25.27%27.31%34.61%34.54%28.21%31.61%34.59%26.89%26.42%34.54%
Effective Tax Rate
37.54%36.50%36.88%35.50%23.12%23.59%23.27%24.08%23.48%20.55%21.79%23.59%
Return on Assets
0.85%0.78%0.84%0.96%1.18%1.25%0.60%0.87%1.30%1.02%1.10%1.25%
Return On Equity
11.19%10.79%11.50%12.70%16.96%17.06%5.88%10.40%19.62%12.37%11.79%17.06%
Return on Capital Employed
16.27%14.86%16.45%17.19%19.70%1.90%0.96%1.43%2.50%2.64%-0.13%1.90%
Liquidity Ratios
Current Ratio
0.470.460.430.290.350.34N/AN/AN/AN/A1.620.35
Quick Ratio
0.470.460.430.290.351.272.892.671.011.191.620.35
Cash ratio
0.080.070.050.060.100.740.380.480.350.360.280.10
Days of Sales Outstanding
1.00K1.06K911.35935.96832.12788.012.12K1.87K1.25K1.42K1.38K832.12
Days of Inventory outstanding
N/AN/AN/AN/AN/A11.17K33.30K32.43K16.41KN/AN/A11.17K
Operating Cycle
N/AN/A911.35935.96832.1211.96K35.42K34.30K17.66K1.42K1.38K832.12
Days of Payables Outstanding
N/AN/A17.51K11.51K7.59K6.85K24.13K20.46K11.20K3.58K3.88K6.85K
Cash Conversion Cycle
N/AN/A-16.60K-10.58K-6.76K5.11K11.29K13.84K6.45K-2.16K-2.49K-6.76K
Debt Ratios
Debt Ratio
0.010.010.010.080.020.020.020.030.060.160.110.02
Debt Equity Ratio
0.150.200.171.060.330.340.240.421.031.991.170.33
Long-term Debt to Capitalization
0.130.170.140.200.240.250.190.250.360.540.320.24
Total Debt to Capitalization
0.130.170.140.510.240.250.190.290.500.660.540.24
Interest Coverage Ratio
N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A-0.07N/A
Cash Flow to Debt Ratio
1.290.440.920.061.821.250.500.080.050.230.471.25
Company Equity Multiplier
13.1013.7013.6013.1314.3413.549.7911.8615.0712.049.8713.54
Cash Flow Ratios
Operating Cash Flow / Sales Ratio
0.380.190.350.141.220.860.580.110.091.031.361.22
Free Cash Flow / Operating Cash Flow Ratio
0.820.780.870.680.950.920.900.560.520.960.980.95
Cash Flow Coverage Ratio
1.290.440.920.061.821.250.500.080.050.230.471.25
Short Term Coverage Ratio
N/AN/AN/A0.08N/AN/AN/A0.430.120.590.80N/A
Dividend Payout Ratio
28.23%26.74%25.72%25.14%22.44%28.61%38.79%31.11%29.37%44.91%44.16%22.44%