Houlihan Lokey HLI
United StatesFinancial Services · Capital MarketsUSD
154.50 USD (+23.4%)
8 analysts
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Houlihan Lokey is a global independent investment bank providing financial advisory services in mergers and acquisitions, restructuring, valuations, and capital markets.
Key points
from its scores- ✓Very solid balance sheet8.5
- ✕Poor share-price trend1.1
- ✕Weak growth1.3
- ✕Demanding valuation2.7
AI analysis
bottom line, main risk, context and newsHold pending signs of stabilization in the advisory business; balance sheet quality and the dividend offer support, but the lack of growth limits attractiveness.
Houlihan Lokey shows solid financial health (ROE 17.79%, operating margin 18.39%) and a sustainable dividend, but its growth is negative (-15.5% in revenue) and its valuation, while not demanding (forward P/E 14.28), does not compensate for the business decline. Momentum is very weak (-26.09% over 12 months).
Dependence on the M&A cycle and restructuring activity, which is clearly slowing as reflected by the 15.5% revenue decline, could prolong weak growth and keep pressure on valuation.
Context and risks
Houlihan Lokey is an independent investment bank with a diversified business model in financial advisory, restructuring, and valuations. Its business has no direct exposure to interest rates, oil prices, or shipping routes, and its balance sheet is solid, with an ROE of 17.79% and an operating margin of 18.39%. The current macro context has no material and direct impact on its operations.
Is Houlihan Lokey stock cheap or expensive?
at the analysis dateOn P/E and Price / book, it trades 81% above the Financial Services median on average.
| Multiple | Company | Sector | Difference |
|---|---|---|---|
| P/E | 21.0 | 13.7 | +53% |
| Price / book | 3.9 | 1.9 | +110% |
| Price / sales | 3.5 | 3.5 | +0% |
Sector: median of the 351 Financial Services companies analysed. In bold, the multiples used for the comparison.
Valuation score: 2.7 out of 10 (median for Financial Services: 5.2).
Average analyst target: 154.50 USD, +23.4% versus the price.
A premium can be justified if the company is of higher quality or grows faster than its sector: Quality / Moat 6.7 (sector 8.8), Growth 1.3 (sector 6.9).
Classic formulas with standard assumptions (10.0% growth, 8-9% discount rate). Indicative only: they change a lot with the assumptions and are not a recommendation.
Work out its fair value yourself →How much would you have made investing every month? →
Comparing it with its sector does not say whether it is a good buy: this is not investment advice.
Score by category
0 to 10 · hover overtap each one to see what it measuresKey metrics
at the analysis date · compared with the Financial Services medianValuation
- P/E
- 21.0
- Forward P/E
- 14.3
- Price / book
- 3.9
- Price / sales
- 3.5
- Market cap
- 8.8B USD
- Enterprise value
- 8.6B USD
Profitability
- ROE
- 17.8%
- ROA
- 11.2%
- ROIC (approx.)
- 16.9%
- Gross margin
- 94.1%
- Operating margin
- 18.4%
- Net margin
- 16.1%
Solvency
- Total debt
- 493.0M USD
- Net debt
- −252.0M USD
- Cash
- 745.0M USD
- Debt / equity
- 20.85
- Current ratio
- 1.66
- Quick ratio
- 1.66
Growth
- Revenue growth
- −15.5%
- Earnings growth
- −19.0%
- EPS (TTM)
- 5.96 USD
- EPS (forward)
- 8.77 USD
Dividend
- Dividend yield
- 2.2%
- Payout
- 41.9%
Risk and market
- Beta
- 1.01
- Analyst consensus
- Buy (8)
- Target price
- 154.50 USD
- 52-week range
- 112.83 – 204.18
Recent news
All HLI news →Compare it with its sector
All 351 in Financial Services →Frequently asked questions about Houlihan Lokey
Is Houlihan Lokey stock cheap or expensive?
On P/E and Price / book, it trades 81% above the Financial Services median on average. Valuation score: 2.7 out of 10 (median for Financial Services: 5.2). Average analyst target: 154.50 USD, +23.4% versus the price. This is not investment advice.
What score does Houlihan Lokey get on MeridIAn Screener?
It scores 5.4 out of 10, rank 1,477 of 2,130 (better than 29% of the companies analysed). Its strongest category is Financial health (8.5) and its weakest, Momentum (1.1). Analysis of 08/10/2026.
What is Houlihan Lokey's P/E ratio?
Its P/E is 21.0: the share price equals 21.0 times earnings per share over the last 12 months. The Financial Services median is 13.7. Based on the earnings analysts expect, the forward P/E is 14.3.
How much is Houlihan Lokey worth on the stock market?
Its market capitalisation is 8.8B USD.
Does Houlihan Lokey pay a dividend?
Yes: its dividend yield is 2.24% and it pays out 42% of its earnings.
How has Houlihan Lokey stock performed over the last year?
It has fallen 32.3% over the last year, excluding dividends. Over the last 52 weeks it has traded between 112.83 and 204.18 USD. Past performance does not guarantee future results.
What do analysts think of Houlihan Lokey?
8 analysts cover it; their average recommendation is “Buy” and their average target is 154.50 USD (+23.4% versus the price). It is an estimate, not market data.