Market Pulse50Neutral

The Charles Schwab CorporationOpportunity Rank #216(SCHW) Intrinsic Value & DCF Analysis (2026)

Current Price

$95.30

Last updated: Mar 24, 2026

Price vs Intrinsic Value

$95.30
Price
$85.29
Intrinsic Value
Overvalued by 11%MOS: $68.23

Fundamental Score

44/100
Bearish

Weighted across 6 signals

Narrative Score

59/100
Improving

No change vs previous

The intrinsic value of The Charles Schwab Corporation (SCHW) is estimated at $85.29 per share based on a 10-year discounted cash flow (DCF) analysis. At the current price of $95.30, the stock appears overvalued relative to its projected cash flow fundamentals. This estimate assumes a 6.11% long-term growth rate and a 9.26% discount rate, reflecting expected future free cash flow and cost of capital.

The intrinsic value of The Charles Schwab Corporation (SCHW) is estimated at $85.29 per share based on a 10-year discounted cash flow (DCF) analysis. At the current price of $95.30, the stock appears overvalued relative to its projected cash flow fundamentals. This estimate assumes a 6.11% long-term growth rate and a 9.26% discount rate, reflecting expected future free cash flow and cost of capital.

Valuation Details

$85.29
-10.50% downside
20% margin of safety: $68.23
Years: 10Growth Rate: 6.11%
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Capital Efficiency

Average Quarterly ROIC
3.58%
Cost of Capital (estimated)11%
Value StatusUnderperforming Capital

The company is earning below its required return. This may indicate inefficient use of capital or excess cash that isn't being reinvested.

Complete historical ROIC is available with
.

Fundamental Details

44/100
BearishWeighted across 6 signals
DCF Discount
10.5% premium to price
32
FCF Yield
5.8% trailing FCF yield
96
ROIC vs WACC
ROIC 3.6% vs WACC 11.0% (0.3x)
16
Net Debt / FCF
3.1x net debt to FCF
0
Buybacks
Share count shrinking
80
FCF CAGR (5Y)
5.7% 5Y FCF CAGR
53
Strengths: FCF Yield, Buybacks. Concerns: DCF Discount, ROIC vs WACC.

Narrative Details

59/100
Improving
Vs 6-Month Baseline:Average (59th pct)Weighted across 5 recent drivers
Trend: StableConfidence: 85%Updated: 1h ago
Sources: 113 (102 News · 11 Analyst)
Drivers(last 30 days)
55 news sentiment+0.9
45 regulatory scrutiny+0.1
Upgrade headlines+0.0
Restructuring-0.0
11 analyst reiterations0.0

Investment Coach

Updated 15h ago
WATCHConfidence: 48%
Thesis
The Charles Schwab Corporation currently trades near fair value with a healthy free cash flow yield of 5.8%, but returns are trailing the estimated cost of capital. The improving narrative and strong buyback activity suggest potential for future value creation, warranting a watchful stance.
Key Risk
The company's return on invested capital remains significantly below its weighted average cost of capital, posing a risk to sustained value generation.
Signals To Watch
  • Price moves to at least a mid-teens discount to fair value.
  • Sustained improvement in ROIC versus WACC spread.
  • Meaningful shifts in the narrative trend and score direction.
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Historical Growth Rates
Free Cash Flow- - -Trend CAGR: 6.11%5 Year CAGR: 26.58%

Free Cash Flow (in millions)

TTM20252024202320222021202020192018201720162015201420132012201120102009200820072006
$9,859$9,859$3,290$20,287$3,028$3,034$7,483$10,033$13,026-$439$3,949$1,512$2,748$1,905$1,414$2,644$120$1,577$190$1,914$1,819

How Intrinziq Estimates Fair Value

Intrinziq estimates The Charles Schwab Corporation's intrinsic value using a discounted cash flow (DCF) model based on free cash flow trends and a market-based discount rate. The model projects future cash flows over ten years and discounts them using a market return assumption to estimate fair value.

The Charles Schwab CorporationFinancial Services

The Charles Schwab Corporation, together with its subsidiaries, provides wealth management, securities brokerage, banking, asset management, custody, and financial advisory services. The company operates in two segments, Investor Services and Advisor Services. The Investor Services segment provides retail brokerage, investment advisory, banking and trust, retirement plan, and other corporate brokerage services; equity compensation plan sponsors full-service recordkeeping for stock plans, stock options, restricted stock, performance shares, and stock appreciation rights; and retail investor and mutual fund clearing services, as well as compliance solutions. The Advisor Services segment offers custodial, trading, banking, and support services; and retirement business and corporate brokerage retirement services. This segment provides brokerage accounts with equity and fixed income, margin lending, options, and futures and forex trading; cash management capabilities comprising third-party certificates of deposit; third-party and proprietary mutual funds; plus mutual fund trading and clearing services; and exchange-traded funds (ETFs), including proprietary and third-party ETFs. It also offers advice solutions, such as managed portfolios of proprietary and third-party mutual funds and ETFs, separately managed accounts, customized personal advice for tailored portfolios, and specialized planning and portfolio management. In addition, this segment provides banking products and services, including checking and savings accounts, first lien residential real estate mortgage loans, home equity lines of credit, and pledged asset lines; and trust services comprising trust custody services, personal trust reporting services, and administrative trustee services. As of December 31, 2021, the Company had approximately 400 domestic branch offices in 48 states and the District of Columbia, as well as locations in Puerto Rico, the United Kingdom, Hong Kong, and Singapore. The Charles Schwab Corporation was incorporated in 1971 and is headquartered in Westlake, Texas.