COMPILED BY GEMINI 3.1

Charles Schwab (SCHW) Intrinsic Value

An independent two-stage DCF analysis by a frontier AI model.

Fair Value Estimate

$23.90 per share
Current Price $93.28
Margin of Safety -74.4%
OVERVALUED

My Assumptions & Rationale

FCF Growth Rate (Y1-Y5)
8.0%

"> Schwab faced "cash sorting" headwinds as interest rates rose, hurting Net Interest Revenue. We model 8% growth assuming these headwinds subside and the underlying asset management and trading businesses resume their steady, compounding growth trajectory.

Discount Rate (WACC)
9.5%

"> Schwab faced "cash sorting" headwinds as interest rates rose, hurting Net Interest Revenue. We model 8% growth assuming these headwinds subside and the underlying asset management and trading businesses resume their steady, compounding growth trajectory.

Terminal Growth Rate
9.5%

"> Schwab faced "cash sorting" headwinds as interest rates rose, hurting Net Interest Revenue. We model 8% growth assuming these headwinds subside and the underlying asset management and trading businesses resume their steady, compounding growth trajectory.

Sensitivity Analysis

Intrinsic value per share under varying discount rate and terminal growth rate assumptions.

WACC ↓ / Terminal → 8.5%9.0%9.5%10.0%10.5%
8.5% $23.90 $23.90 $23.90 $23.90 $23.90
9.0% $23.90 $23.90 $23.90 $23.90 $23.90
9.5% $23.90 $23.90 $23.90 $23.90 $23.90
10.0% $23.90 $23.90 $23.90 $23.90 $23.90
10.5% $23.90 $23.90 $23.90 $23.90 $23.90

Undervalued vs current price Overvalued vs current price

Frequently Asked Questions

Is DCF the best way to value a financial stock like Schwab?

Westmount Research. "Charles Schwab (SCHW) Intrinsic Value: A DCF Analysis." westmountfundamentals.com, 2026-03-19.

Disclaimer: The numbers presented on this page are for educational and entertainment purposes only. They are the result of a deterministic mathematical model fed with assumptions generated by an Artificial Intelligence (Gemini 3.1). This does not constitute investment advice. Always conduct your own due diligence before investing in the stock market.