Charles Schwab Intrinsic Value Calculation – Charles Schwab Reports Fourth Quarter EPS Below Expectations
January 31, 2023
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Charles Schwab Intrinsic Value Calculation – Charles Schwab ($NYSE:SCHW) is a publicly traded company and one of the largest financial services firms in the world. It offers a broad range of services to individual investors, including brokerage accounts and retirement planning, as well as institutional clients such as corporations and other financial institutions. The company recently reported its fourth quarter Non-GAAP EPS of $1.07, falling short of analyst expectations by $0.02. This caused investors to be disappointed as they had expected earnings to continue to grow. These lower than expected results were due to the fact that the company’s trading activity decreased significantly due to the overall market volatility during the quarter.
The company also faced increased competition from other financial services firms, such as Robinhood and E-Trade, which have been aggressively marketing their services to investors. The company’s expenses also increased due to its continued investments in technology and new product offerings. The company is still well positioned for success in the long term, and is continuing to invest in innovative technologies and new product offerings to meet its customers’ needs. Charles Schwab remains committed to helping its customers achieve their financial goals through its various services and products.
Price History
Charles Schwab, an American brokerage and banking company, recently reported their fourth quarter earnings per share (EPS) that were below market expectations. This news has generally been met with negative media coverage due to the lower than expected results. On Wednesday, Charles Schwab’s stock opened at $81.5 and closed at $81.4, down by 2.5% from its previous closing price of $83.5. This drop in stock value is mainly attributed to the disappointing fourth quarter EPS report. The company’s management team has expressed their commitment towards improving financial performance and increasing shareholder value in the coming years. Charles Schwab has a strong track record of delivering long-term growth and profitability, and investors remain confident in their ability to turn the current situation around and get back on track.
Charles Schwab has a diversified portfolio of investments and services ranging from wealth management, brokerage services, banking, and retirement planning. The company also offers an array of innovative products and services that have enabled them to stay ahead of the competition. Charles Schwab’s customer base has remained loyal due to their commitment to providing quality customer service and excellent products. Despite the current EPS report, Charles Schwab retains a strong reputation in the market as a reliable and trustworthy financial services provider. The company is well-positioned to capitalize on the opportunities that lie ahead, and investors should remain confident in their long-term prospects. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Charles Schwab. More…
| Total Revenues | Net Income | Net Margin |
| 20.76k | 6.63k | 34.6% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Charles Schwab. More…
| Operations | Investing | Financing |
| 9.8k | -75.66k | 96.32k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Charles Schwab. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 577.56k | 540.52k | 19.74 |
Key Ratios Snapshot
Some of the financial key ratios for Charles Schwab are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 24.6% | – | – |
| FCF Margin | ROE | ROA |
| 42.0% | 15.8% | 1.0% |
VI Analysis – Charles Schwab Intrinsic Value Calculation
Charles Schwab’s fundamentals are assessed to be able to understand its long-term potential. The VI App, a user-friendly tool, simplifies this process. According to the analysis made, the fair value of each Charles Schwab share amounts to $74.4. However, the stock is currently traded at $81.4, thus being slightly overvalued by 9%. This means that the stock is currently more expensive than it should be, and future investors should keep this in mind before making any decisions. It is important for investors to study the company’s fundamentals and financial statements before investing their money. Knowing the fair value is essential, as it helps investors decide if the stock is actually worth buying or not. In this case, Charles Schwab has a fair value that is lower than its market price, and investors should consider this before investing in the company. In conclusion, it is important to understand the company’s fundamentals before investing in it. The VI App helps simplify the process of assessing Charles Schwab’s long-term potential and its fair value has been established to be around $74.4 per share. However, the stock is currently traded at $81.4, making it slightly overvalued by 9%. This should be taken into consideration by potential investors before making any decisions. More…
VI Peers
Charles Schwab Corp is an American financial services company with headquarters in San Francisco, California. The company was founded in 1971 by Charles Schwab and offers a wide variety of financial services including banking, investments, and retirement planning. Morgan Stanley, CITIC Securities Co Ltd, and Samsung Securities Co Ltd are all competitors of Charles Schwab in the financial services industry.
– Morgan Stanley ($NYSE:MS)
As of 2022, Morgan Stanley’s market cap is 137.06B with a ROE of 9.95%. Morgan Stanley is a leading global financial services firm that provides a full range of investment banking, securities, investment management and wealth management services. The company has offices in more than 42 countries and employs over 60,000 people.
– CITIC Securities Co Ltd ($SHSE:600030)
CITIC Securities Co Ltd has a market cap of 244.81B as of 2022. The company’s return on equity is 7.96%. CITIC Securities Co Ltd is a leading investment bank in China with a focus on providing comprehensive financial services to clients in the areas of securities, investment banking, and asset management.
– Samsung Securities Co Ltd ($KOSE:016360)
Samsung Securities Co Ltd is a South Korean investment bank and brokerage firm. It is a subsidiary of the Samsung Group. The company has a market capitalization of 2.84 trillion as of 2022 and a return on equity of 10.07%. The company provides a range of financial services, including investment banking, equity research, asset management, and more.
Summary
Charles Schwab recently reported fourth quarter earnings that fell below analyst expectations. This has caused negative media coverage and has investors concerned. Despite this, Charles Schwab remains a strong investing option for individuals and institutions. With a wide range of services, including brokerage accounts, retirement options, banking services, and more, Schwab offers some of the most comprehensive investing solutions available.
Additionally, Schwab’s low fees and robust research and analysis capabilities make it a great choice for investors of all levels. Schwab also has a long-term track record of success, with a history of consistent returns and quality customer service.
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