Financial - Capital Markets · NASDAQ
Current Price
$71.20
Intrinsic Value
Use the calculator below to estimate
Run a PE ratio stock valuation on Robinhood Markets, Inc. with auto-filled earnings data, adjustable target PE, and instant fair value estimate.
Open PE Calculator for HOODRobinhood 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.
Earnings Yield
2.94%
ROE (TTM)
21.5%
Based on trailing twelve-month data, HOOD has earnings per share of N/A and trades at a PE ratio of N/A. These are key inputs for stock valuation using the PE ratio method.
The trailing twelve-month PE ratio of HOOD reflects how much investors pay per dollar of Robinhood Markets, Inc.'s earnings. This metric is most useful when compared to Financial - Capital Markets peers and the company's own historical range.
Whether HOOD is overvalued depends on comparing its PE ratio to Financial - Capital Markets peers, historical averages, and growth expectations. A PE above the sector average may indicate overvaluation, but high-growth companies often command premium multiples. Consider pairing PE analysis with a DCF model for a more complete picture.
To value Robinhood Markets, Inc. using PE: (1) Compare the current PE against the Financial - Capital Markets median to assess relative pricing, (2) check the PEG ratio to adjust for growth expectations, (3) review the 5-year PE range to identify where the stock sits historically, and (4) estimate fair value by multiplying a target PE by forward EPS estimates. This relative approach complements DCF's absolute valuation.
The PEG ratio divides the PE ratio by the expected earnings growth rate, providing a growth-adjusted valuation metric. A PEG below 1.0 may indicate undervaluation relative to growth, while above 2.0 may suggest overvaluation. PEG is most reliable for companies with stable, predictable earnings growth.
PE ratio gives a quick relative read — how HOOD is priced versus Financial - Capital Markets peers. DCF provides an absolute value based on projected free cash flows. For HOOD, with a strong ROE of 21.5%, both methods are worth using — PE for a market-relative check, DCF to stress-test whether fundamentals justify the price. Each method has blind spots: PE ignores capital structure and cash flow quality, while DCF is sensitive to growth and discount rate assumptions.
