SCHW · Intrinsic value
Is The Charles Schwab Corporation (SCHW) overvalued or undervalued?
As of Oct 19, 2026, TickerWorth publishes a fair-value range of $87.76 – $88.69 for The Charles Schwab Corporation (SCHW), against the delayed market price of $89.58: priced above our range. It is a range, not a single number, so we do not call it over- or undervalued. It is a model estimate; every input is sourced below.
Model by Miraaj Patel · generated from market data · Updated Oct 19, 2026 · How these pages are made
What is SCHW worth?
- Fair-value range
- $87.76 – $88.69
- Market price
- $89.58
- Gap to fair value
- —
- Verdict
- Priced above our range
Reverse DCF: Today's price implies revenue growth of −7.2% a year for 5 years; our model assumes 10.4% a year on average over the same horizon.
What is SCHW's TickerWorth Score?
Middle of the pack — real strengths and real weaknesses
Compared with Financial Services companies in US
Its strongest point: a profitable, high-quality business. Its weakest: looks expensive on the numbers.
- Value · 30 of 100
Cheaper than 30% of Financial Services companies in US
- Price vs worth · 49 of 100
- Quality · 84 of 100
More profitable than 84% of Financial Services companies in US
- Financial health · 46 of 100
Financially stronger than 46% of Financial Services companies in US
- Growth · 67 of 100
Growing faster than 67% of Financial Services companies in US
- Momentum · 36 of 100
Outperformed 36% of Financial Services companies in US over the past year
Confidence: High confidence · Scored
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Why SCHW gets a range, not one number
At a recent price of $89.58, The Charles Schwab Corporation (SCHW) sits above every lens we ran: our valuation lenses put the business between $87.76 and $88.69 per share. Our lenses disagree too widely for us to state a single fair value, so we publish the range. This is an educational model, not a price target or a recommendation.
Read the full reasoning
The valuation discounts The Charles Schwab Corporation's projected free cash flows at a weighted-average cost of capital (WACC) of 8.2%, with a long-run terminal growth rate of 2.5%. About 78% of the enterprise value comes from the terminal value — the portion beyond the explicit forecast window — which is typical for a stable, cash-generative business and a reminder that small changes in the discount rate or terminal growth assumption swing the intrinsic value meaningfully.
Running the DCF in reverse — solving for the growth the current price already assumes — the market is implying roughly -7.2% annual revenue growth for SCHW. Our base case instead compounds to about 10.4% a year over the same forecast, so the market is pricing in slower growth than our base case. The reverse-DCF is a quick sanity check: it reframes 'is this stock cheap?' as 'do I believe the growth the price requires?' rather than arguing over a single point estimate of fair value.
Sensitivity matters more than any single number. Across a reasonable band of discount-rate assumptions, SCHW's modeled DCF value ranges from about $135.01 to $306.02 per share. If that range still sits below today's price, the market is optimistic relative to the model across the whole band; if it brackets the price, the stock is roughly fairly valued on our assumptions. Use the interactive slider to see exactly where your own cost-of-capital view lands.
How to read this page: the DCF fair value is what The Charles Schwab Corporation would be worth if its cash flows grow as modeled and are discounted at the stated WACC. The assumptions table shows every input and its source; the reverse-DCF shows what the market believes; the sensitivity band shows how fragile the answer is. None of this is investment advice — it is a transparent, auditable framework for forming your own view of SCHW's intrinsic value. Figures update as new filings and prices come in.
Every input behind SCHW's DCF
| Input | Value |
|---|---|
| Base-year revenueLive feed — totalRevenue (TTM) | $27,061,000,000 |
| Base EBIT marginComputed — trailing operatingMargins, held roughly flat | 52.7% |
| Forecast revenue growthESTIMATEAssumption — TickerWorth's 5-year explicit forecast | 17% → 14% → 10% → 7% → 4% |
| Risk-free rateLive feed — US 10-year Treasury yield (^TNX) | 5.1% |
| BetaLive feed — yfinance, 5-year monthly beta vs the S&P 500 (clamped to 0.4–2.5) | 0.78 |
| Terminal growthESTIMATEAssumption — TickerWorth house default 2.5%, held below WACC | 2.5% |
| Diluted sharesLive feed — sharesOutstanding | 1,729M |
| Market priceDelayed quote · as of 2026-10-19 21:03 UTC | $89.58 |
Change SCHW's assumptions
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What does The Charles Schwab Corporation do?
What does it do?
The Charles Schwab Corporation, together with its subsidiaries, operates as a savings and loan holding company that provides wealth management, securities brokerage, banking, asset management, custody, and financial advisory services in the United States and internationally. The company operates in two segments, Investor Services and Advisor Services. It operates in the Capital Markets industry (Financial Services sector), headquartered in United States. The company employs roughly 33,900 people.
How does it make money?
The business turns $23.9B in annual revenue into profit. Out of every $100 of sales, about $53 is left as operating profit (operating margin of 52.7%), after a 98% gross margin on the products/services it sells. After all costs, taxes and interest, 39.3% of revenue becomes bottom-line net profit.
Is it financially healthy?
Financially it looks mixed: carries modest debt (0.8× equity), may struggle to cover its short-term bills (0.7× current ratio), and is currently profitable.
SCHW insider trading
We have no recent SEC Form 4 insider filings on file for The Charles Schwab Corporation. Form 4 covers US-listed companies only.
Common questions
What is SCHW's intrinsic value?
TickerWorth's valuation lenses put The Charles Schwab Corporation (SCHW) at $87.76 – $88.69 per share, versus a market price of $89.58. Our lenses disagree too widely for us to state a single fair value, so we publish the range.
Is SCHW overvalued or undervalued?
Priced above our range at $89.58. We don't call SCHW overvalued or undervalued from a range. This is an educational estimate, not advice.
What discount rate is used for SCHW?
A WACC of 8.2% and a terminal growth rate of 2.5%.
Is The Charles Schwab stock undervalued?
TickerWorth's fair-value range for The Charles Schwab Corporation (SCHW) is $87.76 – $88.69 against a market price of $89.58. Priced above our range. We publish a range here, not one number, so we do not call it over- or undervalued. This is a model estimate, not investment advice.
The Charles Schwab (SCHW) DCF valuation and fair value
Our fair-value range for The Charles Schwab Corporation (SCHW) is $87.76 – $88.69, built on a 8.2% discount rate (WACC) and 2.5% terminal growth. It blends our discounted-cash-flow model with other valuation lenses. Every assumption is listed on this page with its source.
What growth is priced into The Charles Schwab stock?
Today's price implies revenue growth of −7.2% a year for 5 years; our model assumes 10.4% a year on average over the same horizon. This is a reverse DCF: it holds our cash-flow model's other inputs and solves for the revenue growth that makes the model equal today's price of $89.58. A model estimate, not investment advice.
The Charles Schwab (SCHW) insider trading
We have no recent SEC Form 4 insider filings on file for The Charles Schwab Corporation (SCHW). Form 4 covers US-listed companies only.
How does SCHW compare with its peers?
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Other ways into the coverage
Not investment advice. TickerWorth Score is a model output.
Educational tool. Every output reflects the assumptions shown — not a prediction and not investment advice. TickerWorth is not a licensed investment adviser, and these figures are estimates from public filings and market data that can be wrong.