* Note: Prices are in Million (M) USD.
Description:
Houlihan Lokey, Inc., an investment banking firm, provides valuation and financial advisory services, capital markets, mergers and acquisitions (M&A) globally. The company is headquartered in Los Angeles, California.
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Cash : $794 M
Debt : $0 M
EBITDA : $579 M
Since Cash is greater than Total Debt, 5 points assigned.
This criteria used industry in which company operates:
Sector: Financial services
Industry: Capital markets
Based on industry, 3 points assigned.
This criteria used Company's Price To Earning (P/E) Ratio to determines its fair value:
Forward PE Ratio: 29.22
Since Forward PE Ratio is between 25 - 35, 1 point assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Using last 13 overlapping fiscal years (max 20).Average Free Cash Flow: $298 M
Average Revenue: $1,267 M
Revenue Converted To Free Cash Flow (%): 23.5%
Since Free Cash Flow (FCF) to Revenue percentage is greater than 15, 3 points assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2025-03-31): $2,389 M
Revenue 4 Years Ago (2021-03-31): $1,525 M
Last 5 Years Average Revenue Growth: 11%
Since Revenue Growth is between 10 - 15, 3 points assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2025-03-31): $69 M
Share Count 5 Years Ago (2021-03-31): $69 M
Company is buying back its own shares, 3 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Next Year Earnings Per Share (EPS): $7.45
Trailing 12-Month Earnings Per Share (EPS): $6.20
Average Earnings Per Share (EPS): $6.82
Dividend Per Share (DPS): $2
Payout Ratio: 34%
Dividend Yield: 1%
Since company Payout Ratio is less than 50, 2 points assigned.
Since Dividend Yield is greater than 1, 1 point assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Using last 13 valid ROE years (max 20).Average ROE: 16.3%
Since Average ROE is between 10 - 20, 3 points assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $199
52-Week Low: $138
Threshold Price (15% Above 52-Week Low): $158
Since Current price is not within 15% threshold, 0 point assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $13,499 M
Since Market Cap is between 10B - 100B, 2 points assigned.
% Exposure to Total Portfolio
Based on the market cap, we recommend do not exceed 3% exposure of Total Portfolio.
Value-Trade has assigned 26 points to above Houlihan Lokey Inc (HLI) stock.
Last 9 Years Avg PE 22.63, Fair Value PE 15, Industry Based PE 15, Growth Based PE 11, RCFC Based PE 28.8, ROE Based PE 23.07, Risk-Free Anchored PE (25% MoS) 17.08. Based on these 7 values, average assigned is 18.94. Value-Trades has assined P/E value 18.94. Since an average (Current Year EPS + Next Year EPS) earning per share is $6.82.
The fair value of Houlihan Lokey Inc (HLI) stock should be (18.94 x $6.82) = $129.17.
