--- title: "Is Houlihan Lokey (HLI) Fairly Priced After Recent Share Price Softness And Strong Multi‑Year Gains" type: "News" locale: "en" url: "https://longbridge.com/en/news/277118989.md" description: "Houlihan Lokey's current share price of US$169.10 raises questions about its valuation, especially after a recent 5.9% decline over the past month. Despite strong long-term gains of 182.7% over five years, the company scores only 2 out of 6 on valuation checks. The Excess Returns model suggests an intrinsic value of US$178.83, indicating the stock is about 5.4% undervalued. However, its P/E ratio of 26.35x is above industry averages, suggesting it may be overvalued. Investors are advised to monitor the stock closely for potential changes in value." datetime: "2026-02-27T00:16:10.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/277118989.md) - [en](https://longbridge.com/en/news/277118989.md) - [zh-HK](https://longbridge.com/zh-HK/news/277118989.md) --- # Is Houlihan Lokey (HLI) Fairly Priced After Recent Share Price Softness And Strong Multi‑Year Gains - If you are wondering whether Houlihan Lokey’s current share price reflects its true worth, you are not alone. This article is designed to help you size up what you are really paying for. - The stock last closed at US$169.10, with returns of 1.8% over the past week, a 5.9% decline over the past month, a 4.1% decline year to date, a 0.5% gain over the past year, 86.6% over three years and 182.7% over five years, which may leave you questioning whether the recent path justifies today’s price tag. - Recent company updates and sector news have kept Houlihan Lokey on investor watchlists, as corporate activity and advisory demand often steer sentiment around investment banks and financial advisors. These headlines give important context to the recent mix of short term softness and longer term strength in the share price. - Right now Houlihan Lokey scores 2 out of 6 on our valuation checks, which you can see in detail in our valuation score. We will walk through the usual valuation approaches next and also point you to a more complete way of thinking about value at the end of the article. Houlihan Lokey scores just 2/6 on our valuation checks. See what other red flags we found in the full valuation breakdown. ### Approach 1: Houlihan Lokey Excess Returns Analysis The Excess Returns model looks at how much value a company creates above the return that shareholders are estimated to require. It starts from the equity on the balance sheet, then compares the company’s expected return on that equity to its estimated cost of equity. For Houlihan Lokey, the model uses a Book Value of US$32.92 per share and a Stable EPS of US$9.25 per share, based on weighted future Return on Equity estimates from 4 analysts. The Average Return on Equity used is 25.05%, while the Cost of Equity is US$2.91 per share, implying an Excess Return of US$6.34 per share. The model also factors in a Stable Book Value of US$36.95 per share, sourced from weighted future Book Value estimates from 4 analysts. Combining these inputs, the Excess Returns model arrives at an estimated intrinsic value of about US$178.83 per share. Compared with the recent share price of about US$169.10, this suggests the stock is around 5.4% undervalued. This sits within a reasonable margin of error rather than providing a clear bargain signal. **Result: ABOUT RIGHT** Houlihan Lokey is fairly valued according to our Excess Returns, but this can change at a moment's notice. Track the value in your watchlist or portfolio and be alerted on when to act. HLI Discounted Cash Flow as at Feb 2026 Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Houlihan Lokey. ### Approach 2: Houlihan Lokey Price vs Earnings For profitable companies like Houlihan Lokey, the P/E ratio is a useful shorthand for how much you are paying for each dollar of earnings. It helps you compare what the market is currently willing to pay for the company’s earnings relative to other options. What counts as a reasonable P/E usually reflects two things: how quickly earnings are expected to grow, and how risky those earnings are perceived to be. Higher expected growth and lower perceived risk can justify a higher P/E, while slower growth or higher risk typically support a lower multiple. Houlihan Lokey currently trades on a P/E of 26.35x. That sits above both the Capital Markets industry average of 23.01x and the peer group average of 15.39x. Simply Wall St’s Fair Ratio for Houlihan Lokey is 16.22x, which is its proprietary view of what a balanced P/E could look like after factoring in earnings growth, industry, profit margins, market cap and company specific risks. This Fair Ratio can be more informative than a simple peer or industry comparison because it adjusts for the company’s own characteristics rather than assuming one size fits all. With the current 26.35x P/E sitting above the 16.22x Fair Ratio, the shares look expensive on this metric. **Result: OVERVALUED** NYSE:HLI P/E Ratio as at Feb 2026 P/E ratios tell one story, but what if the real opportunity lies elsewhere? Start investing in legacies, not executives. Discover our 20 top founder-led companies. ### Upgrade Your Decision Making: Choose your Houlihan Lokey Narrative Earlier we mentioned that there is an even better way to understand valuation, so let us introduce you to Narratives, which are simply your story about a company expressed through your own assumptions for fair value, future revenue, earnings and margins, linked to a forecast and then to a fair value that you can compare with today’s price. On Simply Wall St, within the Community page used by millions of investors, Narratives give you an easy way to set out that story in numbers, see how your view differs from others, and quickly spot when your Fair Value is above or below the current price. This can help you decide whether the stock fits your watchlist or portfolio. Narratives also refresh as new information such as news, earnings or updated analyst estimates are added, so your view does not stay frozen. For Houlihan Lokey, for example, one investor might align with the higher fair value view around US$242.55 per share while another might lean closer to the lower fair value of US$173 per share, and Narratives make those different perspectives clear and comparable in one place. Do you think there's more to the story for Houlihan Lokey? Head over to our Community to see what others are saying! NYSE:HLI 1-Year Stock Price Chart _This article by Simply Wall St is general in nature. **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.** 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._ ### Valuation is complex, but we're here to simplify it. Discover if Houlihan Lokey might be undervalued or overvalued with our detailed analysis, featuring **fair value estimates, potential risks, dividends, insider trades, and its financial condition.** Access Free Analysis ### Related Stocks - [HLI.US](https://longbridge.com/en/quote/HLI.US.md) ## Related News & Research - [Houlihan Lokey veröffentlicht Investorenpräsentation zu Geschäftsstrategie und Markterfolg](https://longbridge.com/en/news/274934121.md) - [Envestnet Asset Management Inc. Reduces Stake in Houlihan Lokey, Inc. $HLI](https://longbridge.com/en/news/275223612.md) - [A Look At Waste Connections (WCN) Valuation After Recent Share Price Softness](https://longbridge.com/en/news/282423965.md) - [Is It Too Late To Consider Phibro Animal Health (PAHC) After Its 235% One-Year Surge?](https://longbridge.com/en/news/282471247.md) - [A Look At FTI Consulting (FCN) Valuation After Recent Share Price Volatility](https://longbridge.com/en/news/282453472.md)