Houlihan Lokey Inc (HLI) fair value: what the stock is really worth
We calculate from audited financials what Houlihan Lokey Inc is really worth. The fair value tells you whether the price is too high or too low, the quality score (0 to 100) how solid the business behind it is. 26 models, 37 quality factors, updated daily.
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Price vs Fair Value
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Sep 19, 2026.
How to read this chart
60‑month range $69.63 – $206.68 · fair‑value band $60.65 – $225.71 · the $130.55 price screens below the $158.38 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Sep 19, 2026.
Houlihan Lokey, Inc., an investment banking company, provides merger and acquisition (M&A), capital market, financial restructurings and liability management, and financial and valuation advisory services worldwide. The company operates in three segments: Corporate Finance (CF), Financial Restructuring (FR), and Financial and Valuation Advisory (FVA).
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Houlihan Lokey, Inc., an investment banking company, provides merger and acquisition (M&A), capital market, financial restructurings and liability management, and financial and valuation advisory services worldwide. The company operates in three segments: Corporate Finance (CF), Financial Restructuring (FR), and Financial and Valuation Advisory (FVA). The CF segment offers general financial advisory services; and advises public and private institutions, including financial sponsors on buy-side and sell-side M&A transactions, debt and equity financings in both the private and public markets, and other corporate finance transactions. The FR segment advises debtors, creditors, and other parties-in-interest related to recapitalization/deleveraging transactions. This segment also provides a range of advisory services, such as structuring, negotiation, and confirmation of plans of reorganization; structuring and analysis of exchange offers; liability management transactions; corporate viability assessment; dispute resolution and expert testimony; and procuring debtor-in-possession financing. The FVA segment provides valuation services to companies; debt and equity interests comprising illiquid investments; and other assets and liabilities. This segment also offers fairness opinions in connection with mergers and acquisitions and other transactions; solvency opinions in connection with corporate spin-offs and dividend recapitalizations; other types of financial opinions; and diligence, tax, transaction accounting, and other financial advisory services, as well as dispute resolution services. It serves corporations, financial sponsors, and government agencies. Houlihan Lokey, Inc. was incorporated in 1972 and is headquartered in Los Angeles, California.
Stock analysis
Houlihan Lokey Inc (HLI) currently trades at $130.55, while our model-based Fair Value estimate is $158.38, implying the stock looks roughly 17.6% undervalued today.
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Valuation
Bull case: the DCF Models group reads highest at a median of $159.62 per share, and 6 of the 13 models we run sit above the $130.55 price.
Bear case: the Asset-Based group reads lowest at $22.93, and 7 of the 13 models stay below the price. Evidence for this calculation is high.
Scenario range: $60.65 (bear) to $225.71 (bull), the price of $130.55 sits inside it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 77/100 (high quality), in the Financial Services sector.
Healthy Growth: Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Houlihan Lokey Inc reported revenue of $2.6B in FY2026 versus $2.3B in FY2022, a compound +3.6%/yr. Reported net income was $426M in FY2026, compounding −0.7%/yr from FY2022.
Key figures
Market cap $8.9B · P/E ratio 22.5 · P/S ratio 3.67 · EPS (TTM) $6.22 · Dividend yield 1.8% · Net margin 16.3% · Return on equity 18.3% · Return on assets (EBIT) 14.3%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 57 out of 100 (medium confidence).
What moves the price
The share trades about 38% below its 52-week high, currently below its 200-day average.
For context, the median of 10 Financial Services peers we cover trades at −23% fair-value upside, at 21%, HLI screens cheaper than that median.
Fair Value models
Bear $60.65Fair Value $158.38Bull $225.71
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above is their evidence-weighted blend, not the output of a single model. Based on fiscal year 2026 figures (about 6 months old). Earnings retained since then ($1.84 per share) are deliberately not added.Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target.Evidence ⓘEvidence = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.94/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Revenue growth 1 year
+9.5%
Revenue growth 3 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+13.1%
Revenue growth 5 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+11.4%
Revenue growth 13 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+13.2%
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What shareholders gained per year (last 5 years) ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate. Basis: adjusted.
+10.8%
Earnings growth per share plus dividend.
Earnings per share, growth per year+9.0%
Dividend (yield on the price)1.8%
Pace: 5 vs 10 years ⓘTwo data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.6% vs 17%, slowing
Profit margin 2021 to 2026 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.27% → 24%
Growth Forecast
Little optimism in the price
The price assumes less growth than the company has delivered so far and less than analysts expect.
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
−1.1%
Yearly growth needed for the next five years to justify today's price.
What forecasts expect ⓘAnalysts publish sales forecasts for the next two fiscal years. For the years after that, growth slows evenly to 2 % a year by year ten (2 % is the long-run rate our models use). Projected years are marked as such.
+12.2%
Yearly sales growth analysts expect, extended to five years.
News mood ⓘNews mood, the average tone of recent news (99 articles), rated against how stocks are usually covered. 🚀 Hype = unusually upbeat · 🙂 Positive = above average · 😐 Neutral = typical · 🙁 Negative = below average · 😨 Very negative = unusually downbeat. It reflects the tone of coverage, not our valuation.Hype
Recent news coverage is unusually upbeat, far more positive than stocks are typically covered.
Price, fair value, quality and upside side by side.
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Peer Groupⓘ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.Capital Markets · 457 stocks
Beats the industry median on 4/15 measures
Overall it trails its industry peers.
Valuation
Quality Score76 · Top 25%
Fair Value upside−41% · Below median
Profitability
Return on equity (TTM)18% · Top 25%
Return on assets10% · Top 25%
Net margin (TTM)16% · Below median
Operating margin (TTM)23% · Below median
Growth and dividend
Revenue growth−5% · Below median
Dividend yield (TTM)1.8% · Below median
Balance sheet
Debt / equity0.01× · Below median
Valuation Multiplesvs Capital Markets median · lower = cheaper
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Is Houlihan Lokey Inc (HLI) overvalued or undervalued?
As of Sep 19, 2026, our model estimates a fair value of $158.38 versus a price of $130.55, about +21% upside (undervalued).
What is the fair value of HLI?
Our model-based fair value for Houlihan Lokey Inc is $158.38 (as of Sep 19, 2026), built from audited fundamentals. The current price: $130.55.
What is the quality score of HLI?
Houlihan Lokey Inc has a Quality Score of 77/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for Houlihan Lokey Inc (HLI)?
Our model-based price target is the fair value of $158.38 (as of Sep 19, 2026) from 13 valuation models. Cautious scenario $60.65, optimistic scenario $225.71. It is a calculation from audited fundamentals, not an analyst target.
What is the Houlihan Lokey Inc stock forecast for 2026?
Our models put fair value at $158.38, about +21% upside versus a price of $130.55 (undervalued). Cautious scenario $60.65, optimistic scenario $225.71. The calculation is refreshed regularly with new filings.
What is the revenue of Houlihan Lokey Inc (HLI)?
Houlihan Lokey Inc reported trailing-twelve-month revenue of about $2.6B (latest available figure, as of Sep 19, 2026).
Does Houlihan Lokey Inc pay a dividend?
Houlihan Lokey Inc currently shows a dividend yield of about 1.84% relative to its recent price (as of Sep 19, 2026).
What growth is priced into Houlihan Lokey Inc (HLI)?
For today's price to be fair in a discounted-cash-flow model, Houlihan Lokey Inc would have to grow free cash flow by -1.1 % per year for five years (discount rate 9.7 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +11.4 % per year. As of Sep 19, 2026.
What discount rate (WACC) does the fair value of HLI use?
Our models discount Houlihan Lokey Inc at 9.7 %: a base by market capitalisation (mid), damped by beta 1.00, country premium for USA. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For Houlihan Lokey Inc that is -1.1 % per year a year over ten years, using the same discount rate (9.7 %) and the same formula as our fair value.
How much growth has Houlihan Lokey Inc (HLI) delivered so far?
Over the past 5 years revenue at Houlihan Lokey Inc grew +11.4 % a year. The price currently implies -1.1 % per year free-cash-flow growth a year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of Houlihan Lokey Inc (HLI) growing?
The median revenue growth in the sector is +8.1 % a year. That is the yardstick for the growth priced into Houlihan Lokey Inc (-1.1 % per year a year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of Houlihan Lokey Inc (HLI)?
The free-cash-flow yield on the price is 7.63 %: that much free cash flow Houlihan Lokey Inc produces per unit of market value. When it exceeds the discount rate of our models (9.7 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of Houlihan Lokey Inc (HLI)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Houlihan Lokey Inc it is $158.38 per share (as of Sep 19, 2026), against a price of $130.55. It is the blended result of 13 valuation models (cash flow, earnings, asset, dividend).
Is Houlihan Lokey Inc stock overvalued or undervalued in 2026?
As of Sep 19, 2026, HLI trades below its calculated fair value: price $130.55, fair value $158.38, a gap of about +21% (undervalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of HLI?
No. The price is what the market pays today ($130.55); the fair value is what the company's own numbers justify ($158.38). For Houlihan Lokey Inc the two are $27.83 per share apart. That gap is exactly why we show both numbers side by side.
How much is Houlihan Lokey Inc worth?
The market values Houlihan Lokey Inc at about $8.9B (market capitalisation, as of Sep 19, 2026). Per share that is $130.55; our models calculate a fair value of $158.38 per share.
What do the bullish and bearish scenarios say about HLI?
Our models span a range for Houlihan Lokey Inc: cautious scenario $60.65, base $158.38, optimistic $225.71 per share (as of Sep 19, 2026, price $130.55). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of HLI?
Houlihan Lokey Inc trades at a price-to-earnings ratio of 22.5 (as of Sep 19, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of $158.38 is built from several models across several years. Other multiples: PEG 6.5, P/B 4.0, P/S 3.6, EV/EBITDA 13.5.
What is the PEG ratio of HLI?
The PEG ratio of Houlihan Lokey Inc is 6.54 (P/E divided by earnings growth, as of Sep 19, 2026). That is above 1, so the growth is already paid for in the price.
How solid is the balance sheet of Houlihan Lokey Inc (HLI)?
Balance-sheet figures for Houlihan Lokey Inc (as of Sep 19, 2026): return on equity 18.3%, debt of 0.01 per unit of equity. They feed the Quality Score of 77/100, which measures business quality independently of the share price.
How far is HLI from its 52-week high?
Houlihan Lokey Inc trades at $130.55, about 38% below its 52-week high of $209.24 (as of Sep 19, 2026). Distance from the high says nothing about value: that is what the fair value of $158.38 is for.
Which stocks are comparable to Houlihan Lokey Inc?
From the same area (Financial Services) we also value Morgan Stanley, a financial holding company,, The Goldman Sachs Group, The Charles Schwab Corporation, Interactive Brokers Group, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is Houlihan Lokey Inc stock attractive at the current price?
The data as of Sep 19, 2026: price $130.55, calculated fair value $158.38 (+21%), Quality Score 77/100, from 13 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of HLI calculated?
We run Houlihan Lokey Inc through 13 models from four families: discounted cash flow, earnings models, asset and balance-sheet models, and dividend models. Every model gets the same audited fundamentals; the result is the weighted average of $158.38, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 16.1 % above its aggregate fair value. Houlihan Lokey Inc currently trades 21 % below its own fair value, and the market average says nothing about that. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of Houlihan Lokey Inc (HLI)?
The closing price on Sep 18, 2026 was $130.55. Our model-based fair value is $158.38, about +21% upside (undervalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Houlihan Lokey Inc right now?
The model range is unusually wide ($60.65 to $225.71). The outcome hinges heavily on assumptions, so read the point estimate with caution. For a financial, book-value and earnings-based methods matter more than a cash-flow DCF, which fits banks and insurers poorly.
Where does the earnings growth of Houlihan Lokey Inc (HLI) come from?
Earnings per share at Houlihan Lokey Inc grew +16.6 % a year from 2015 to 2026. Broken into its drivers: revenue per share +12.4 %, EBIT margin +1.1 %, tax rate +2.6 %, residual (interest, one-offs) +0.0 %. The four rates multiply to the earnings growth rate, they do not add up. Start and end are three-year averages so a single exceptional year does not distort the result.
Key figures of Houlihan Lokey Inc
How large is the market capitalisation of Houlihan Lokey Inc (HLI)?
The market capitalisation of Houlihan Lokey Inc is $8.9B. The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of Houlihan Lokey Inc (HLI)?
The price-to-sales ratio of Houlihan Lokey Inc is 3.67 (P/E × margin). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of Houlihan Lokey Inc (HLI)?
Earnings per share at Houlihan Lokey Inc are $6.22 (price ÷ EPS = P/E 22.5). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of Houlihan Lokey Inc (HLI)?
The dividend yield of Houlihan Lokey Inc is 1.8% (payout 38.6%). Yearly dividend relative to the share price. 3% pays 3 per 100 invested. Below: how much of profit is used for it.
What is the net margin of Houlihan Lokey Inc (HLI)?
The net margin of Houlihan Lokey Inc is 16.3% (fiscal year 2026). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of Houlihan Lokey Inc (HLI)?
The return on equity (ROE) of Houlihan Lokey Inc is 18.3% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of Houlihan Lokey Inc (HLI)?
On an EBIT basis the return on assets of Houlihan Lokey Inc is 14.3% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of Houlihan Lokey Inc (HLI)?
The operating margin of Houlihan Lokey Inc is 22.5% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Houlihan Lokey Inc (HLI)?
Revenue at Houlihan Lokey Inc is growing −4.6% versus a year earlier (3y avg +13.1%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at Houlihan Lokey Inc (HLI)?
Earnings per share at Houlihan Lokey Inc are growing −16.6% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net cash does Houlihan Lokey Inc (HLI) hold?
Houlihan Lokey Inc holds more cash than debt, $697M net (fiscal year 2026). The company holds more cash than debt, a safety cushion.
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Broad data
Sep 19, 2026