Franklin Resources (BEN): Valuation Check After New Small‑Cap ETF Launch and Growing Inflows

Franklin Resources, Inc. has been busy, rolling out its Franklin Small Cap Enhanced ETF while also posting steady assets under management and broad based inflows that suggest its multi year pivot is gaining traction.

See our latest analysis for Franklin Resources.

All of this product innovation and partnership activity is starting to show up in the numbers, with a roughly 6 percent 1 month share price return and a solid year to date rise suggesting that momentum is rebuilding even as longer term total shareholder returns remain more modest.

If Franklin’s latest moves have you rethinking where growth might come from next, it could be worth exploring fast growing stocks with high insider ownership as a way to uncover fresh ideas with real skin in the game.

With earnings growing faster than revenue, a new wave of ETF launches, and the stock still trading only modestly above some price targets, should investors see Franklin as a quietly undervalued compounder? Or is the market already baking in the next leg of growth?

Most Popular Narrative Narrative: 5% Undervalued

Compared with Franklin Resources' last close at $23.48, the most followed narrative sees fair value modestly higher, hinting at underappreciated earnings power ahead.

The analysts have a consensus price target of $25.0 for Franklin Resources based on their expectations of its future earnings growth, profit margins and other risk factors. However, there is a degree of disagreement amongst analysts, with the most bullish reporting a price target of $31.0, and the most bearish reporting a price target of just $19.0.

Read the complete narrative.

Curious how relatively muted revenue growth assumptions can still underpin a sharply higher earnings base and compressed future multiple. Want to see the full valuation playbook driving that call.

Result: Fair Value of $24.73 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, persistent fee pressure and ongoing integration risks around recent acquisitions could still derail the expected margin expansion and earnings rebound.

Find out about the key risks to this Franklin Resources narrative.

Another View: Market Ratio Flags a Richer Price

While the narrative model pegs Franklin Resources as about 5 percent undervalued, a simple price to earnings lens tells a different story. Shares trade on 25.9 times earnings versus a fair ratio of 17.5 times and peers around 14.1 times. This implies execution risk if growth disappoints.

See what the numbers say about this price — find out in our valuation breakdown.

Build Your Own Franklin Resources Narrative

If you see the story differently or want to dig into the numbers yourself, you can build a custom view in minutes: Do it your way.

A great starting point for your Franklin Resources research is our analysis highlighting 1 key reward and 2 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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