SCHW · NYQ · Financial Services
The Charles Schwab Corporation
Also onShortfallConsensus DriftCrosscheck
Implied value per share
USD 69.86
Market price
USD 88.71
Implied upside
-21.2%
10-year forecast · Excess returns over book equity · Base case · Price 2026-11-02 · Accounts to 2025-12-31
NoteA financial, valued on excess returns over book equity.
Excess Returns
- Return on equity
- 17.3%
- Payout
- 42%
- Cost of equity
- 8.42%
| Line | FY26 | FY27 | FY28 | FY29 | FY30 | FY31 | FY32 | FY33 | FY34 | FY35 |
|---|---|---|---|---|---|---|---|---|---|---|
| Opening book equity | USD 42.7bn | USD 46.6bn | USD 50.7bn | USD 54.6bn | USD 58.5bn | USD 62.2bn | USD 65.6bn | USD 68.7bn | USD 71.5bn | USD 73.8bn |
| Return on equity | 17.3% | 17.3% | 17.3% | 17.3% | 17.3% | 17.3% | 17.3% | 17.3% | 17.3% | 17.3% |
| Excess return | USD 3.8bn | USD 4.1bn | USD 4.5bn | USD 4.8bn | USD 5.2bn | USD 5.5bn | USD 5.8bn | USD 6.1bn | USD 6.3bn | USD 6.5bn |
| Present value | USD 3.5bn | USD 3.5bn | USD 3.5bn | USD 3.5bn | USD 3.5bn | USD 3.4bn | USD 3.3bn | USD 3.2bn | USD 3.1bn | USD 2.9bn |
| Book equity | USD 42.7bn |
| Present value of excess returns | USD 33.3bn |
| Terminal, growing at 2.50% | USD 50.4bn |
| Equity value | USD 126.4bn |
| Per share | USD 69.86 |
Discount Rate
| Risk-free rate | 4.89% | US 10-year Treasury (^TNX), 2026-11-02 |
| Equity risk premium | 4.23% | Damodaran, January 2026 |
| Beta | 0.835 | Reported 0.753, pulled toward 1.0 (Blume) |
| Cost of equity | 8.42% | Risk-free + beta x equity risk premium |
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Yahoo Finance and RBA data. General information, not advice. Methodology.