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HOOD

S&P 500
Favorable · 63/100

Robinhood Markets

Financials
Investment Banking & Brokerage

$105.71

2.3%

Updated Today 7:15 PM ET

Price — Past Year

▲ Up 38.0% over the last 12 months

Price 50-day average 200-day averageSource: Yahoo Finance · refreshed daily
Key Metrics

Market Cap

$97.48B

P/E

52.13x

Forward P/E (est.)

43.91x

ROE

21.6%

Revenue Growth

41.5%

EPS Growth

18.7%

Profit Margin

41.1%

FCF Yield

-0.8%

Debt / Equity

1.27x

ROIC

Interest Coverage

Current Ratio

1.22x

Dividend Yield

Implied Growth (rev. DCF)

Rating Score

63/100

Technical Analysis (Educational)
Research

Technical analysis reads price and volume to judge momentum and timing. It complements the fundamentals above — it does not replace them. Here is what HOOD's chart says today, with each tool explained.

Trend — moving averages. A moving average is the average closing price over a window, which smooths out daily noise. HOOD trades near $105.71, above its 50-day average ($82.80) and 200-day average ($102.79). Price above both averages, with the shorter one above the longer, is the textbook definition of an uptrend — momentum favours buyers.

Momentum — RSI. The Relative Strength Index runs 0–100 and measures how strong recent gains are versus losses. Above 70 is "overbought", below 30 "oversold". At 63 it is in neutral territory — neither stretched nor washed out.

MACD. MACD compares two moving averages to flag shifts in momentum. Its histogram is currently positive — short-term momentum is improving.

Volatility — ATR. Average True Range is the typical daily move. HOOD's is $7.37 (~7.0% of price), so swings of about that size each day are normal — handy for setting a stop that isn't too tight.

Support & resistance. Over the last month HOOD found buyers near $73.26 (support) and sellers near $110.73 (resistance); its 52-week range is $63.51–$153.86. A decisive break beyond either edge often marks the next move.

Volume. The latest session traded 1.1× the 20-day average — about normal. Rising volume on up-days suggests real buying; on down-days, real selling.

Educational information to help you read a chart — not a recommendation or a forecast. It updates daily as the price and indicators change.

Business Overview
Research

Robinhood Markets (HOOD) is a large-cap company in the Investment Banking & Brokerage industry, part of the Financials sector of the S&P 500, with a market value around $97.48B.

In its latest reported year it generated about $4.47B in revenue and $1.88B in net profit.

Our model rates HOOD Favorable (63/100) on growth, profitability, financial health, and valuation. The summary below is built from its filed financials and current ratios and refreshes automatically.

Revenue Growth
Research

4Y CAGR

25.3%

Revenue moved from $1.81B in 2021 to $4.47B in 2025, a 25.3% compound annual growth rate. The most recent year grew a strong 41.5% year over year. Consistent top-line growth is one sign of healthy demand.

Profitability
Research

Gross Margin

95.2%

Operating Margin

46.3%

Net Margin

42.1%

ROE

21.6%

Robinhood Markets keeps about 41.1% of each sales dollar as net profit, with a 95.2% gross margin and 46.3% operating margin. Return on equity is 21.6%. Margins this wide usually signal pricing power or a cost advantage.

Debt Analysis
Research

Total Debt

Net Debt

Net Debt / EBITDA

Debt / Equity

1.27x

Leverage: debt-to-equity is 1.3x, with a current ratio of 1.2x. That is a moderate, manageable debt load for most businesses.

Cash Flow Analysis
Research

Operating CF

$1.64B

Free Cash Flow

$1.64B

FCF Margin

36.6%

In the latest year Robinhood Markets produced about $1.64B of operating cash flow and $1.64B of free cash flow after capital spending. That is a free-cash-flow yield of about -0.8% on today's price. Cash flow is what ultimately pays shareholders, so it is worth tracking over time.

Valuation Analysis
Research

P/E

52.13x

P/S

19.77x

P/B

12.44x

EV / EBITDA

HOOD trades at 52.1x trailing earnings (about 43.9x on estimated forward earnings), 19.8x sales, and 12.4x book value. That is a rich multiple that prices in a lot of future growth.

Metrics vs. Typical Range

Where this stock sits versus what most companies trade at.

TTM P/E
52.1xExpensive
Forward P/E
43.9xExpensive
P/S ratio
19.8xExpensive
Revenue growth
41.5%Strong
EPS growth
18.7%Strong
Gross margin
95.2%Strong
Net margin
41.1%Strong
ROE
21.6%Strong

Typical ranges are general references (e.g., many stocks trade at ~18–26x earnings), not hard rules. Context only — not investment advice.

Sector Peer Comparison

How HOOD stacks up against its Financials peers — valuation, profitability, and growth versus the sector median.

In the Financials sector (76 S&P 500 companies), HOOD ranks #44 of 76 by our overall rating. It trades at a premium versus the sector on earnings (52.1x P/E vs. 15.2x median) with a higher return on equity (21.6% vs. 15.3%) and faster revenue growth (41.5% vs. 9.1%).

P/E vs sector

52.1x

median 15.2x

ROE vs sector

21.6%

median 15.3%

Growth vs sector

41.5%

median 9.1%

Sector rank

#44

of 76 by rating

CompanyP/ERev Gr.Rating
HOODThis stock52.1x41.5%Favorable· 63
SCHW16.8x8.1%Favorable· 66
IBKR156.3x12.9%Neutral· 48
RJF14.1x5.3%Neutral· 47
GS17.9x1.3%Neutral· 49
MS19.4x12.3%Neutral· 57
BNY17.8xFavorable· 67
PNC12.9x72.3%Strong· 80
Financials median15.2x9.1%65/100

Valuation vs. quality map

sector medianSCHWIBKRRJFGSMSPNCHOODP/E — cheaper ←→ pricierROE — more profitable ↑

The sweet spot is upper-left: more profitable (higher ROE) for a lower P/E. Dashed lines mark the sector median.

Compare side by side

Peers are the closest Financials companies by sub-industry and size. Sector median is across all 76 S&P 500 names in the sector. Educational, not a recommendation.

Bull Case

The case for HOOD:

  • Revenue is growing 41.5% a year, a sign of real demand.
  • High net margins (41.1%) point to pricing power or efficiency.
  • Strong return on equity (21.6%) shows capital is put to work well.
  • Our model's overall read is Favorable (63/100).
Bear Case

The case against HOOD:

  • A rich 52.1x earnings multiple prices in a lot of growth.
  • Limited free cash flow at today's price.
Key Risks
Research

Valuation risk — at 52.1x earnings, disappointing results could compress the multiple.

Balance-sheet risk — debt/equity of 1.3x magnifies the impact of higher rates or weaker earnings.

Market risk — sector rotation, the economic cycle, and broad sentiment move the stock regardless of fundamentals.

Investment Thesis
Research

On balance, the fundamentals screen favourably: Robinhood Markets is a large-cap financials business still growing nicely, with solid profitability, and a heavier debt load to watch. It trades at 52.1x earnings, which our model scores Favorable (63/100). Weigh this against your own goals and time horizon — this is educational information, not a recommendation.

Data notice. Fundamentals and financial statements are sourced from company filings (SEC EDGAR) and market-data providers; prices and market caps refresh on trading days and may be delayed. Ratings, projections, technical signals, and written summaries are model- or rule-generated for education and may simplify or lag the latest filings.

Not advice. Nothing on this page is investment advice or a recommendation to buy, hold, or sell any security. Do your own research and consult a licensed financial professional before investing.