What is The Charles Schwab Corporation (SCHW) DCF Fair Value and Intrinsic Value in 2026?

The Charles Schwab Corporation (SCHW) intrinsic value is calculated using conservative multi-stage Discounted Cash Flow (DCF) models, 5-year free cash flow trajectories, Graham Numbers, and owner earnings multiples. LocalAlpha tracks real-time margin of safety against live market prices.

What is The Charles Schwab Corporation's historical Return on Invested Capital (ROIC) and Moat Rating?

The Charles Schwab Corporation operates in the Financials sector (Capital Markets) with an economic moat rating of WIDE. LocalAlpha tracks 5-year audited quarterly ROIC, operating margin stability, and balance sheet solvency ratios.

What is The Charles Schwab Corporation's financial health rating and Piotroski F-Score?

The Charles Schwab Corporation's balance sheet quality is evaluated using the 9-point Piotroski F-Score, Altman Z-Score solvency model, debt-to-equity ratio, and quick/current liquidity coverage to guard against financial distress.

How does LocalAlpha monitor The Charles Schwab Corporation (SCHW) for quarterly SEC filing thesis breaks?

LocalAlpha audits The Charles Schwab Corporation's 10-K, 10-Q, and 8-K regulatory filings on SEC EDGAR within 15 minutes of release. If reported metrics breach an investor's custom ROIC floor, operating margin boundary, or qualitative risk criteria, an autonomous breach audit is dispatched immediately.

StocksSCHW

SCHW

Charles Schwab Corporation (TheFinancial Services / Capital MarketsINTACT

The Charles Schwab Corporation, together with its subsidiaries, operates as a savings and loan holding company that provides wealth management, securities brokerage, banking, asset management, custody, and financial advisory services in the United States and internationally. The company operates in two segments, Investor Services and Advisor Services. It offers brokerage accounts with equity and fixed income trading, margin lending, options trading, futures and forex trading, and cash management capabilities, including money market funds, and certificates of deposit; third-party mutual funds through the Mutual Fund Marketplace and Mutual Fund OneSource service, as well as mutual fund trading and clearing services to broker-dealers; exchange-traded funds; advisory solutions for managed portfolios, separately managed accounts, customized personal advice for tailored portfolios, specialized planning, and full-time portfolio management; banking products comprising checking and savings accounts, first lien residential real estate mortgage loans, home equity lines of credit, and pledged asset lines; and trust custody services, personal trust reporting services, and administrative trustee services. It provides digital and software based trading platforms; research tools, and multichannel support, real-time market data, options trading; equity compensation plan sponsors full-service recordkeeping for stock plans, stock options, restricted stock, performance shares, and stock appreciation rights; retirement plan services; mutual fund clearing services; and advisor services, including interactive tools and educational content. The Company operates through branch offices. The Charles Schwab Corporation was founded in 1971 and is headquartered in Westlake, Texas.

Share Price

$106.78

52W: $83.96 - $114.53

DCF Fair Value

$178.78

+40.3% MoS

Thesis Hub

P/E (TTM)

19.4x

ROIC

39.2%

Operating Margin

52.3%

FCF Yield

4.9%

Debt / Equity

1.51x

Piotroski Score

5/9

Altman Z-Score

3.32

Market Cap

$184.7B

Price vs. Intrinsic Value Corridor

Margin of Safety Buy Zone (<25% Discount)

Historical market price overlaid against conservative DCF Fair Value & Benjamin Graham Margin of Safety bands.

Period Return (1Y)

—()

Period Range

$— - $—

DCF Fair Value

$178.78

MOS Buy Target (-25%)

$134.09

Valuation Overlays: DCF Fair Value ($178.78) 25% MOS Buy Target ($134.09) Revised Graham ($194.10) Graham Number ($56.09)

2-Stage Discounted Cash Flow (DCF) Workbench

Conservative intrinsic value model based on owner cash generation over a 10-year investment horizon. Opens with LocalAlpha's baseline assumptions (matching the fair value shown above) — adjust any input to stress-test.

Current Market Price

$106.78

DCF Fair Value

$178.82

+40.3% MoS

Starting Free Cash Flow ($M)$9,036M

$100M$9,036M (Reported)$50,000M

Stage 1 Growth (Years 1-5)18.0%

-5%10% (Target)35%

Stage 2 Growth (Years 6-10)4.5%

0%5%20%

Discount Rate (WACC / Hurdle)9.0%

6%9% (Standard)15% (High Risk)

Terminal Perpetual Growth2.5%

1% (GDP Floor)2.5% (Inflation)4.0%

Net Debt ($M)-$20,600M (Net Cash)

-$100B CashBalance Sheet+$150B Debt

10-Yr PV of Cash Flows

$117.0B

PV of Terminal Value

$171.6B

Implied Enterprise Value

$288.6B

Implied Equity Value

$309.2B

Year	Yr 1	Yr 2	Yr 3	Yr 4	Yr 5	Yr 6	Yr 7	Yr 8	Yr 9	Yr 10
Projected FCF ($M)	$10,662	$12,582	$14,846	$17,519	$20,672	$21,602	$22,575	$23,590	$24,652	$25,761
Present Value (PV)	$9,782	$10,590	$11,464	$12,411	$13,436	$12,881	$12,349	$11,839	$11,350	$10,882

Benjamin Graham & Buffett Value Models

Classical deep value metrics based on asset backing, normalized earnings power, and owner cash yield.

Graham Number-90.4% Premium

$56.09

Calculated as √(22.5 × EPS × BVPS). The maximum theoretical price a defensive investor should pay based purely on asset book value and current earnings.

EPS: $5.50BVPS: $25.42

Revised Graham Formula+45% MoS

$194.10

Formula: V = (EPS × (8.5 + 2g) × 4.4) / Y where g is the conservative 7-10 yr growth rate and Y is AAA Bond Yield.

Growth Rate (g%)

Bond Yield (Y%)

Buffett Owner Earnings4.6% Yield

$4.96 / share

True distributable cash flow: Net Income + D&A - Maintenance CapEx. Reflects the cash Buffett would extract without hurting unit volume.

Total: $8.6BYield: 4.6%

Reverse DCF: Market Growth Expectation

MODEST BARRIER

5.9% CAGR (Next 10 Yrs)

At the current price of $106.78, the market is assuming the business will compound Free Cash Flow at 5.9% per year for the next decade with a 9% hurdle rate.

Value Investor Verdict

✓ Low market hurdle: Easy for a wide-moat compounder to beat.

Autonomous Thesis Underwriting

Surveil SCHW with Mathematical Margin of Safety Rules

Set non-negotiable floor rules for Charles Schwab Corporation (The. If a newly filed quarterly 10-Q breaks your ROIC floor, operating margin boundary, or balance sheet leverage rules, receive an autonomous breach audit within 15 minutes.

Buffett Quality

ROIC > 15% • Margin > 15% • D/E < 0.5x

Margin Floor Guard

Current Margin 52.3% • Floor > 10%

Solvency Guard

Altman-Z > 2.6 • Current Ratio > 1.5x

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Frequently Asked Questions: Charles Schwab Corporation (The (SCHW) Intrinsic Valuation

Audited fundamentals, DCF intrinsic value sensitivity, and thesis break detection parameters for Charles Schwab Corporation (The.

Based on institutional multi-stage Discounted Cash Flow (DCF) modeling on audited SEC cash flows, Charles Schwab Corporation (The has an estimated DCF intrinsic fair value of $178.78 per share compared to its current market price of $106.78. This represents an estimated 40.3% margin of safety (trading below fair value). Additionally, its classic Benjamin Graham Number stands at $56.09.