Market Pulse53Neutral

The Charles Schwab CorporationOpportunity Rank #6(SCHW) Intrinsic Value & DCF Analysis (2026)

Current Price

$101.61

Last updated: Jul 24, 2026

Price vs Intrinsic Value

$101.61
Price
$71.14
Intrinsic Value
Overvalued by 30%MOS: $56.91

Fundamental Score

57/100
Neutral

Weighted across 6 signals

Narrative Score

79/100
Strong

+2 vs previous

Trend Score

70/100
Strong

As of 2026-07-24

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The intrinsic value of The Charles Schwab Corporation (SCHW) is estimated at $71.14 per share based on a 10-year discounted cash flow (DCF) analysis. At the current price of $101.61, the stock appears overvalued relative to its projected cash flow fundamentals. This estimate assumes a 5.97% long-term growth rate and a 10.02% discount rate, reflecting expected future free cash flow and cost of capital.

The intrinsic value of The Charles Schwab Corporation (SCHW) is estimated at $71.14 per share based on a 10-year discounted cash flow (DCF) analysis. At the current price of $101.61, the stock appears overvalued relative to its projected cash flow fundamentals. This estimate assumes a 5.97% long-term growth rate and a 10.02% discount rate, reflecting expected future free cash flow and cost of capital.

Valuation Details

$71.14
-29.99% downside
20% margin of safety: $56.91
Years: 10Growth Rate: 5.97%
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Capital Efficiency

Average Quarterly ROIC
58.42%
Cost of Capital (estimated)11%
Value StatusCreating Value

The company is earning a higher return on invested capital than it costs to raise that capital — a sign of strong, efficient value creation.

Complete historical ROIC is available with
.

Fundamental Details

57/100
NeutralWeighted across 6 signals
DCF Discount
30.0% premium to price
0
FCF Yield
4.3% trailing FCF yield
57
ROIC vs WACC
ROIC 58.4% vs WACC 11.0% (5.3x)
100
Net Debt / FCF
Net cash position
100
Buybacks
Share count shrinking
80
FCF CAGR (5Y)
0.2% 5Y FCF CAGR
25
Strengths: ROIC vs WACC, Net Debt / FCF. Concerns: DCF Discount, FCF CAGR (5Y).

Narrative Details

79/100
Strong
+2 vs previous · +1 new driversVs 6-Month Baseline:High (95th pct)Weighted across 6 recent drivers
Trend: Improving upConfidence: 100%Updated: 1d ago
Sources: 87 (75 News · 12 Analyst)
Drivers(last 30 days)
62 news sentiment+2.8
7 regulatory scrutiny+0.7
3 earnings beat-0.3
Analyst downgrades-0.2
3 upgrade headlines+0.2
11 analyst reiterations0.0

Trend Details

70/100
StrongAs of 2026-07-24310 daily bars used
Distance from 52-Week High-4.9%
3M Relative Strength vs SPY+10.4%
Price vs 50 EMA+6.1%
Price vs 21 EMA66 · +2.6%
Price vs 50 EMA77 · +6.1%
21 EMA vs 50 EMA75 · +3.4%
3M RS vs SPY85 · +10.4%
6M RS vs SPY26 · -9.2%
Distance from 52W High90 · -4.9%

Investment Coach

Updating... 45d ago
BUYConfidence: 81%
Thesis
The Charles Schwab Corporation is undervalued with an estimated fair value 68.2% above its current price, supported by strong fundamentals including a high ROIC exceeding its cost of capital by 5.7 points and a robust narrative score. The company demonstrates strong free cash flow metrics and effective buybacks, indicating solid financial health and growth potential.
Key Risk
A key risk is if the ROIC falls below the cost of capital or if the valuation discount narrows significantly, undermining the investment thesis.
Signals To Watch
  • Monitor whether valuation discount remains above 10%.
  • Confirm ROIC stays above cost of capital over coming quarters.
  • Follow narrative trend for meaningful shifts in the score direction.
Ask the Coach - Available with
Historical Growth Rates
Free Cash Flow- - -Trend CAGR: 5.97%5 Year CAGR: 20.03%

Free Cash Flow (in millions)

TTM20252024202320222021202020192018201720162015201420132012201120102009200820072006
$7,560$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 (SCHW) stands as a prominent financial services enterprise, delivering a comprehensive suite of offerings that encompass wealth management, securities trading and brokerage, banking services, asset administration, custodial solutions, and financial planning advice. Its operations are primarily structured around two core divisions: Investor Services and Advisor Services. The Investor Services segment caters directly to individual retail clients, furnishing a range of services such as brokerage accounts, investment guidance, banking and trust administration, retirement planning, and corporate brokerage offerings. It further assists businesses with the full-service recordkeeping of equity compensation plans (e.g., stock options, restricted stock, performance shares), provides clearing services for retail investors and mutual funds, and offers compliance solutions. Conversely, the Advisor Services segment provides a robust support system for independent investment advisors. This includes custodial services, trading platforms, banking infrastructure, and general operational support. Within this segment, offerings span diverse brokerage accounts for equities, fixed income, margin lending, options, and futures/forex trading. It also facilitates cash management through various instruments, provides access to a broad selection of proprietary and third-party mutual funds and ETFs, and offers comprehensive trading and clearing for these investment vehicles. Furthermore, it delivers sophisticated advice solutions like managed portfolios, separately managed accounts, customized personal financial guidance, and specialized planning. Complementing these are banking products such as checking and savings accounts, first-lien residential mortgages, home equity lines of credit, and pledged asset lines, alongside a full spectrum of trust services including custody, reporting, and administrative roles. As of December 31, 2021, the company maintained an extensive physical presence, with approximately 400 domestic branch offices located across 48 U.S. states and the District of Columbia, in addition to sites in Puerto Rico, the United Kingdom, Hong Kong, and Singapore. Established in 1971, its corporate headquarters are situated in Westlake, Texas.