Houlihan Lokey, Inc. (HLI) Valuation — DCF, Graham & Comparables

Houlihan Lokey, Inc. (HLI) — Price $128.50 — Financial Services — Investment - Banking & Investment Services — NYSE

Latest reported results:

Valuation dashboard for Houlihan Lokey, Inc. (HLI) with P/E 21.34, P/B 3.73, EV/EBITDA 14.65 and dividend yield 2.06%. DCF, Graham Number, EPS growth, peer multiples and dividend discount models plus sector comparison against other Financial Services companies.

Houlihan Lokey, Inc. is a prominent global investment banking firm offering a comprehensive suite of financial advisory services. These include expertise in mergers and acquisitions (M&A), capital markets, financial restructuring, and valuation. The company's operations are divided into three core segments: The Corporate Finance division provides broad financial guidance.

Analysis Summary

Houlihan Lokey, Inc. reported revenue of $2.62B in the most recent fiscal year, growing at a 5-year CAGR of 11.4%. Net income reached $425.7M, with a 6.4% 5-year CAGR.

Trailing-twelve-month margins: gross margin 50.8%, operating margin 21.8%, net margin 16.1%.

At the current price of $128.50, HLI trades at a P/E of 21.34 and an ROE of 18.17%. Market capitalisation stands at $9.0B.

Balance sheet quality for HLI: current ratio of 1.5. A debt-to-equity below 1.0 typically signals conservative capital structure, while a current ratio above 1.5 indicates comfortable short-term liquidity.

Valuation Ratios

P/E Ratio21.34
Price / Book3.73
EV / EBITDA14.65
Dividend Yield2.06%

Valuation Models

DCF Fair Value$111.50
vs Current Price-13.2%

Peer Comparison

SymbolCompanyMarket CapP/EP/BROE
HLIHoulihan Lokey, Inc.$8.9B21.343.7318.2%
ALLYAlly Financial Inc.$11.5B8.880.755.5%
ACGLArch Capital Group Ltd.$32.7B7.321.3418.2%
GLXYGalaxy Digital$7.6B2.40-5.4%
EVREvercore Inc.$10.2B14.855.4439.8%
SFStifel Financial Corp$10.7B8.291.8116.1%
FHNFirst Horizon Corporation$10.9B11.011.2011.7%
JEFJefferies Financial Group Inc.$9.2B12.13850.3111.5%

Price

Price$128.50
Market Cap$9.0B
ExchangeNYSE
CountryUS

Profitability

Return on Equity18.17%
Return on Invested Capital15.07%
Return on Assets9.88%
Gross Margin50.79%
Operating Margin21.82%
Net Margin16.10%

Related companies: ACGL · ALLY · EVR · FHN · GLXY · JEF · OXLC

Explore sector: Financial Services · Investment - Banking & Investment Services

More sections of HLI: Overview · Financials · Statistics · Estimates · Technical · Ownership · News · Events

Discover more: Weekly Radar: the S&P 500 through the Buffett and Lynch methods · Investment Academy — learn to analyze stocks