Financial - Capital Markets · NASDAQ
Current Price
$71.20
Intrinsic Value
Use the calculator below to estimate
Run a full DCF analysis on Robinhood Markets, Inc. with auto-filled fundamentals, adjustable assumptions, and sensitivity heatmap.
Robinhood Markets, Inc. operates financial services platform in the United States. Its platform allows users to invest in stocks, exchange-traded funds (ETFs), options, gold, and cryptocurrencies. The company also offers various learning and education solutions comprise Snacks, a digest of business news stories; Learn, which is a collection of approximately articles, including guides, feature tutorials, and financial dictionary; Newsfeeds that offer access to free premium news from various sites, such as Barron's, Reuters, and The Wall Street Journal; lists and alerts, which allow users to create custom watchlists and alerts to monitor securities, ETFs, and cryptocurrencies, as well as cash management services; and offers First trade recommendations to all new customers who have yet to place a trade. Robinhood Markets, Inc. was incorporated in 2013 and is headquartered in Menlo Park, California.
ROIC (TTM)
18.9%
ROE (TTM)
21.5%
FCF Yield
4.67%
The intrinsic value of HOOD depends on assumptions about future growth rate, discount rate (WACC), and terminal value. A DCF model discounts projected free cash flows back to present value — small changes in WACC can shift the estimate by 20% or more, which is why sensitivity analysis is essential.
Whether HOOD is undervalued depends on comparing the DCF-derived intrinsic value to the current market price of $71.20. A positive margin of safety (intrinsic value above market price) suggests potential undervaluation, but the degree of confidence depends on the reliability of your growth and discount rate assumptions.
To perform a DCF valuation on Robinhood Markets, Inc.: (1) Start with the trailing free cash flow per share as the base, (2) project future FCF growth over 5-10 years based on Financial - Capital Markets industry trends and company fundamentals, (3) apply a discount rate (WACC) reflecting HOOD's risk profile, and (4) add a terminal value for cash flows beyond the projection period.
DCF (Discounted Cash Flow) estimates what a company is worth today based on its future cash generation. For Robinhood Markets, Inc., this means projecting how much free cash flow the Financial - Capital Markets will produce over the next 5-10 years, then discounting those amounts to today's dollars. HOOD's ROIC of 18.9% indicates strong capital efficiency, which supports higher growth assumptions in the DCF model.
WACC (Weighted Average Cost of Capital) is the discount rate in a DCF model — it reflects the minimum return investors require. For HOOD, the capital structure and equity risk premium determine WACC. A 1% increase in WACC typically reduces the intrinsic value by 10-15%.
