The Charles Schwab Corporation (SCHW) Stock Analysis
Score ABlue Chip · Grade A · Bearish
$92.65
$131.72
+42.2%
10/10
A
Blue Chip
Investment Thesis
Good opportunity: Solid company with good risk/reward at 10.0:1.
For New Investors
Quantitative score: high
For Current Holders
Quantitative score: neutral
Buy if
- Price drops 15-20% (improves asymmetry)
- Bull scenario catalysts materialize
- Market-wide correction creates opportunity
Sell if
- Bear scenario triggers occur
- Quality metrics deteriorate (ROIC declining)
- Better alternatives emerge
Valuation
Fair Value estimate: $131.72 (+42.2%). Significantly undervalued.
PEG-Based EPS
$138.98
FCF DCF Model
$127.24
EV/EBITDA
$135.61
Blended Fair Value
$131.72
Confidence
High
Methods
PEG-Based EPS, FCF 2-Stage DCF, EV/EBITDA
Quality Analysis
90/120 points
Investable
ROE (3Y Avg)
14.2%
ROIC-WACC Spread
-6.8%
D/E Ratio
0.6x
Current Ratio
0.5x
Interest Coverage
4x
FCF Positive Years
3/3
Quality Flags
- Financial sector: alternative quality assessment applied
- Strong ROE: 14.2%
- Earnings declining
Market Sentiment
Wall Street Consensus
$125.00
+34.9% Upside
20 analysts
Range: $105.00 — $137.00
Rating: Buy
Our model aligns with Wall Street consensus.
Trend & Technical
Price ($92.65) is 2.3% below SMA 200 ($94.86). Bearish trend. Caution on entry.
Tech Score 63/100 — Neutral technical picture. Mixed signals across indicators.
Risk & Reward
Asymmetry Ratio
10.00:1
Expected Return
+90.1%
Bull Upside
+197.7%
Bear Downside
-10.0%
Excellent asymmetry: >3:1 ratio. Upside significantly outweighs downside.
Verdict: Very Favorable
Scenario Analysis
Bear
Base
Bull
Buy Zone & Action Plan
See exact entry zones, stop-loss levels, and a personalized action plan.
AI Executive Summary
Get a detailed AI-written breakdown of the investment thesis, risks, and catalysts.
Technical Analysis
RSI, MACD, moving averages, trend signals, and momentum indicators.
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Frequently Asked Questions
What is the fair value of SCHW?
Based on our multi-method conviction analysis, the estimated fair value of The Charles Schwab Corporation (SCHW) is $131.72. This is calculated by blending PEG-Based EPS, FCF 2-Stage DCF, EV/EBITDA and applying a quality premium of 0% based on the company's fundamentals. The confidence level of this estimate is high.
Is SCHW a buy, sell, or hold?
SCHW currently has a BUY rating with a conviction score of 10/10. Good opportunity: Solid company with good risk/reward at 10.0:1. Quantitative score: high.
Is SCHW a high-quality stock?
The Charles Schwab Corporation has a quality grade of A (90/120 points), rated as Investable. Key metrics include ROE of 14.2%, ROIC-WACC spread of -6.8%, and D/E ratio of 0.6x.
What type of stock is SCHW?
SCHW is classified as a "blue_chip" in our framework. Low dividend (reinvesting): 1.3%, Mature growth: 9.7%, Large cap: $161.1B, Moderate growth: 9.7%, Dividend paying: 1.3%
What do Wall Street analysts say about SCHW?
20 Wall Street analysts have a consensus price target of $125.00 for SCHW, representing +34.9% upside. Targets range from $105.00 to $137.00. The consensus recommendation is "Buy". Our model aligns with Wall Street consensus.
What are the risks of investing in SCHW?
The risk/reward asymmetry ratio for SCHW is 10.00:1, rated as Very Favorable. Excellent asymmetry: >3:1 ratio. Upside significantly outweighs downside. The expected return is +90.1%, with bull case upside of +197.7% and bear case downside of -10.0%.
What is the current trend for SCHW?
SCHW is in a bearish trend. Price ($92.65) is 2.3% below SMA 200 ($94.86). Bearish trend. Caution on entry. The technical score is 63/100.
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Last updated: May 19, 2026 · Framework version 3.7
This analysis is for informational purposes only and should not be considered financial advice. Always do your own research before making investment decisions.