Charles Schwab (SCHW): Valuation Check After Record Q3 2025 Results and Surging Institutional Demand

Charles Schwab (SCHW) just delivered record third quarter 2025 revenue and net income, and the market has noticed, with heavy institutional trading suggesting big money is leaning into the story.

See our latest analysis for Charles Schwab.

At a share price of $101.57, Schwab’s 30 day share price return of just over 8 percent sits on top of a 12 month total shareholder return above 38 percent, signaling momentum that still looks more like a sustained rerating than a quick trade.

If this kind of steady compounding appeals to you, it might be worth scanning the market for other financials with similar profiles using fast growing stocks with high insider ownership.

With earnings at record highs, shares near all time peaks, and only a modest discount to analyst targets, investors face a familiar dilemma: is Schwab still trading below its true worth or already pricing in years of future growth?

Most Popular Narrative Narrative: 9.9% Undervalued

With Charles Schwab closing at $101.57 against a narrative fair value near $112.79, the current setup implies room for further upside if assumptions hold.

Ongoing digital transformation and operational enhancements (e.g., AI powered efficiency and automation) are expected to sustainably reduce cost to serve and improve client experience at scale, underpinning long term operating margin expansion.

Read the complete narrative.

Curious how margin expansion, double digit top line growth, and a richer earnings mix combine into that higher fair value number? The full narrative unpacks the precise revenue runway, profit trajectory, and future earnings multiple that need to click into place for this valuation case to work.

Result: Fair Value of $112.79 (UNDERVALUED)

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

However, heightened competition from digital brokers and a sharp downturn in net interest income could quickly erode the upside implied by this valuation case.

Find out about the key risks to this Charles Schwab narrative.

Build Your Own Charles Schwab Narrative

If you see the story differently or want to stress test the numbers yourself, you can build a customized Schwab narrative from scratch in just minutes, Do it your way.

A great starting point for your Charles Schwab research is our analysis highlighting 3 key rewards 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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