Assessing Franklin Resources (NYSE:BEN) Valuation After Q4 Beat And Binance Tokenized Collateral Launch

Franklin Resources (BEN) is back in focus after a fourth quarter that topped Wall Street expectations, supported by broad-based net inflows and record assets under management, as well as a new tokenized collateral program with Binance.

See our latest analysis for Franklin Resources.

The recent Q4 beat, record assets under management and the Binance tokenized collateral launch have come alongside a 90 day share price return of 28.22% and a 1 year total shareholder return of 39.10%. Together, these factors point to building momentum rather than a short lived bounce.

If this combination of fund flows and digital asset experimentation has your attention, you might also want to look at 23 top founder-led companies as another way to uncover differentiated companies to research next.

With Franklin Resources trading near its analyst price target while also showing a 14.06% intrinsic discount and solid recent returns, you have to ask whether there is still a buying opportunity here or if the market is already pricing in future growth.

Most Popular Narrative: 11.2% Overvalued

With Franklin Resources last closing at $27.49 against a narrative fair value of about $24.73, the most followed view suggests the current price sits ahead of underlying fundamentals, with future earnings power and cash flows doing the heavy lifting in that model.

The integration of acquired platforms (e.g., Legg Mason, Apera, Putnam, Alcentra) has broadened Franklin's global product suite, especially in fixed income, ETFs, and alternatives. Cost synergies and improved distribution are anticipated to further drive net inflows and scale-driven efficiency, supporting long-term revenue and margin growth.

Read the complete narrative.

Curious how this acquisition story translates into that fair value? The narrative leans heavily on margin gains, steadier earnings and a future P/E reset. Want the full blueprint behind those assumptions?

Result: Fair Value of $24.73 (OVERVALUED)

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

However, persistent net outflows at Western Asset Management and ongoing fee pressure on lower margin products could easily stall the earnings and margin story investors are watching.

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

Another View: Cash Flows Point in a Different Direction

While the popular narrative pegs Franklin Resources at about 11.2% overvalued versus a $24.73 fair value, our DCF model tells a different story. On that score, the shares at $27.49 sit roughly 14.1% below an estimated future cash flow value of $31.99. Which lens do you trust more: earnings multiples or cash flows?

Look into how the SWS DCF model arrives at its fair value.

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Franklin Resources for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 56 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Next Steps

If this mix of optimism and concern feels familiar, now is the moment to look through the details yourself and decide what really matters to you, starting with 3 key rewards and 2 important warning signs.

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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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