Robinhood Markets Inc (HOOD) Fair Value & Analysis
Financial Services · US · Market cap $101B · ISIN US7707001027
What is Robinhood Markets Inc really worth?
Robinhood Markets Inc
HOOD · US
A solid business, but trading 303% above our fair value of $30.94.
Strengths
Risks
Fair value as of: Sep 1, 2026
From 13 valuation models · updated 4 days ago
Share price +33.4% over the past month.
What runs behind every stock
69 individual criteria per stock, every one traceable See the method →
What matters now
- The price sits above even our optimistic bull case ($86.32). The favourable scenario is already priced in.
- The model range is unusually wide ($23.20 to $86.32). The outcome hinges heavily on assumptions, so read the point estimate with caution.
- Solid but not exceptional quality (66/100) and above fair value, neither a clear bargain nor a standout compounder.
- For a financial, book-value and earnings-based methods matter more than a cash-flow DCF, which fits banks and insurers poorly.
Price vs Fair Value (5 years)
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Sep 1, 2026.
How to read this chart
60‑month range $6.89 – $152.46 · fair‑value band $23.20 – $86.32 · the $124.72 price screens above the $30.94 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Sep 1, 2026.
Analysis
Robinhood Markets Inc (HOOD) currently trades at $124.72, while our model-based Fair Value estimate is $30.94, implying the stock looks roughly 303.1% overvalued today. The Quality Score stands at 66/100 (solid quality), in the Financial Services sector. Bull case: the Earnings-Based group reads highest at a median of $83.30 per share, and 0 of the 13 models we run sit above the $124.72 price. Bear case: the Asset-Based group reads lowest at $7.75, and 13 of the 13 models stay below the price. Evidence for this calculation is medium.
Over the trailing twelve months, Robinhood Markets Inc generated revenue of $4.6B at a net margin of 41.1%. Revenue grew 15.1% year over year. It earns a return on equity of 21.5%. Net debt stands at $11.1B. Fundamentals as of Sep 1, 2026
Our scenario range runs from $23.20 (bear case) to $86.32 (bull case); at $124.72, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 19% below its 52-week high and 96% above its 52-week low, currently above its 200-day average. For context, the median of 10 Financial Services peers we cover trades at −35% fair-value upside, at −75%, HOOD screens richer than that median.
Fair Value models
This estimate rests on fiscal year 2025 figures, and about 8 months have passed since. In that time the company retained roughly $1.40 per share, which is 4.5 % of the fair value. The fair value deliberately does not add this in: the models value reported figures, not a projection.
Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small. Every input is real reported data, nothing guessed.
All 13 models by family
Widest divergence: Earnings-Based ($83.30) versus Dividend Discount ($0.1500). Highest evidence: Growth DCF (70).
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Key figures & financial health
More key figures
Figures from reported company fundamentals · as of Sep 1, 2026. TTM = trailing twelve months.
Quality Score breakdown
Of which business quality 62 · Market factors (momentum, volatility) 49
Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.
All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.
About the company
Robinhood Markets, Inc. operates financial services platform in the United States. The company's platform allows users to invest in stocks, exchange-traded funds (ETFs), and American depository receipts.
Full company description
Robinhood Markets, Inc. operates financial services platform in the United States. The company's platform allows users to invest in stocks, exchange-traded funds (ETFs), and American depository receipts. It offers fractional trading, recurring investments, access to investing on margin, fully-paid securities lending, cash sweep, instant withdrawals, retirement program, around-the-clock trading, joint investing accounts, event contracts, future contract services, and short selling. The company also provides various learning and education solutions comprise Snacks, an accessible digest of business news stories for a new generation of investors; Learn, which is an online collection of guides, feature tutorials, and financial dictionary; Newsfeeds that offer access to free, premium news from sites from various sites, such as Barron's, Reuters, and Dow Jones. In addition, the company offers In-App Education, a resource that covers investing fundamentals, including why people invest, a stock market overview, and tips on how to define investing goals, as well as allows customers to understand the basics of investing before their first trade; and Crypto Learn and Earn, an educational module available to various crypto customers through Robinhood Learn to teach customers the basics related to cryptocurrency. Further, it provides Robinhood credit cards, cash card and spending accounts, and wallets. Robinhood Markets, Inc. was incorporated in 2013 and is headquartered in Menlo Park, California.
Company description, as reported by the company or data provider.
Revenue & earnings trend
FY2021 – FY2025 · reported fiscal years
Robinhood Markets Inc reported revenue of $4.5B in FY2025 versus $1.8B in FY2021, a compound +25.3%/yr. Reported net income was $1.9B in FY2025.
HOOD screens 303% overvalued. Compare with Morgan Stanley, a financial holding company, →
Recent news
External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.
- What Makes Robinhood Markets (HOOD) as an Attractive Bet?
- Morgan Stanley Just Upgraded Robinhood Markets Inc. (HOOD). Here’s Why
- Tesla, Apple, Nvidia, Medtronic, Alumis, Robinhood, Fervo, and More Stocks That Explain Today’s Market
- Morgan Stanley Upgrades HOOD, Cites Prediction Market Boom for $150 Target
Peer Group
Capital Markets · 453 stocks
How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.
Valuation Multiples vs Capital Markets median · lower = cheaper
Strength profile in five axes (Snowflake)
Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.
VALUE 0: the price sits above our fair-value range.
Insider activity: 40/100
Values & ESG
Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.
Similar stocks
10 more Capital Markets stocks, each showing price versus our Fair Value estimate (as of Sep 1, 2026).
| Stock | Price | Fair Value | vs Fair Value |
|---|---|---|---|
| Morgan Stanley, a financial holding company, MS | $214.77 | $138.97 | −35% |
| The Goldman Sachs Group GS | $1,034 | $756.89 | −27% |
| The Charles Schwab Corporation SCHW | $110.16 | $66.17 | −40% |
| Macquarie Group MQG | A$251.87 | A$75.58 | −70% |
| CITIC Securities Company 600030 | ¥27.93 | ¥17.68 | −37% |
| Guotai Haitong Securities Co 601211 | ¥17.87 | ¥18.62 | +4% |
| East Money Information Co 300059 | ¥19.42 | ¥4.77 | −75% |
| CSC Financial Co 601066 | ¥25.78 | ¥14.17 | −45% |
| Huatai Securities Co 601688 | ¥19.56 | ¥19.26 | −2% |
| Nomura Holdings NMR | $10.30 | $9.99 | −3% |
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