<div id="readability-page-1"><div><p>LPL Financial Holdings (LPLA) has quietly outperformed over the past few years, and its recent pullback from record highs is giving investors a fresh chance to revisit the story at a more grounded valuation.</p> <p>See our latest analysis for LPL Financial Holdings.</p> <p>After a strong run earlier in the year, LPL’s 1 month share price return of negative 6.23 percent has cooled the pace, but a 5 year total shareholder return of 270.14 percent still points to powerful, long term momentum behind the story.</p> <p>If this kind of compounding track record has you thinking bigger, it might be worth exploring fast growing stocks with high insider ownership as a way to spot other under the radar growth names.</p> <p>With earnings still growing faster than revenue and the stock trading below consensus price targets, investors now face a familiar crossroads: is LPL modestly undervalued after its pullback, or is the market already pricing in years of growth?</p> <h2>Most Popular Narrative Narrative: 15.6% Undervalued</h2> <p>With LPL Financial Holdings closing at $355.35 versus a narrative fair value near $420.93, the current market price trails the growth story being modeled.</p> <p><em>The acquisition and successful integration of platforms like Atria and Commonwealth, combined with industry-leading asset retention, are enabling LPL to further leverage economies of scale and expand its market share. This is positioning the firm for stronger long-term earnings growth as these integrations are completed.</em></p> <p>Read the complete narrative.</p> <p>Want to see what kind of revenue ramp, margin lift, and future earnings power it takes to back this gap? The narrative’s underlying math might surprise you.</p> <p><strong>Result: Fair Value of $420.93 (UNDERVALUED)</strong></p> <p>Have a read of the narrative in full and understand what's behind the forecasts.</p> <p>However, persistent fee compression or a sharp drop in rate sensitive cash sweep income could quickly erode margins and challenge this undervaluation thesis.</p> <p>Find out about the key risks to this LPL Financial Holdings narrative.</p> <h2>Another View On Valuation</h2> <p>While the narrative suggests LPL is 15.6 percent undervalued, our ratio based view tells a different story. The shares trade on a 34.1 times price to earnings multiple versus a 23.6 times industry average and a 20.8 times fair ratio, implying meaningful downside risk if sentiment cools.</p> <p>See what the numbers say about this price — find out in our valuation breakdown.</p> <figure><img height="476" src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/21dd4713-ef9e-4797-81dc-01fd7ba763cf/chart/pe-multiple-vs-industry?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="746" original-src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/21dd4713-ef9e-4797-81dc-01fd7ba763cf/chart/pe-multiple-vs-industry"/><figcaption>NasdaqGS:LPLA PE Ratio as at Dec 2025</figcaption></figure><h2> Build Your Own LPL Financial Holdings Narrative</h2> <p>If you are skeptical of these assumptions or simply want to stress test the outlook yourself, you can build a custom LPL narrative in under three minutes: Do it your way.</p> <p>A great starting point for your LPL Financial Holdings research is our analysis highlighting 3 key rewards and 3 important warning signs that could impact your investment decision.</p> <h2>Looking for more investment ideas?</h2> <p>Do not stop with one opportunity, use the Simply Wall St Screener to surface fresh, data driven ideas and stay ahead of investors who only watch headlines.</p> <ul> <li>Capture early stage potential by scanning these 3570 penny stocks with strong financials that pair tiny market caps with surprisingly solid fundamentals and momentum.</li> <li>Position your portfolio for structural tech shifts by targeting these 24 AI penny stocks pushing real world applications of machine intelligence.</li> <li>Lock in compelling value by filtering for these 930 undervalued stocks based on cash flows where strong cash flows are not yet fully reflected in market prices.</li> </ul> <p><em> This article by Simply Wall St is general in nature. <strong>We provide commentary based on historical data     and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice.</strong> It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your     financial situation. We aim to bring you long-term focused analysis driven by fundamental data.     Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.     Simply Wall St has no position in any stocks mentioned.</em></p></div></div>

LPLA

<p>LPL Financial Holdings (LPLA) has seen a recent pullback from record highs, offering a chance to reassess its valuation. Despite a 6.23% drop in the last month, its 5-year return is 270.14%. Analysts suggest LPL is 15.6% undervalued, with a fair value of $420.93. However, risks include fee compression and cash sweep income drops. The stock trades at a high PE ratio, indicating potential downside risk. Investors are encouraged to explore further investment opportunities and risks.</p>

Revisiting LPL Financial Holdings (LPLA) Valuation After Recent Pullback From Record Highs