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Is Robinhood Markets, Inc. (HOOD) Undervalued? Valuation & Fair Price

At $111.15, 3 of the 4 frameworks would pass on Robinhood Markets, Inc. today — Warren Buffett, Benjamin Graham, and Phil Town (Rule #1) rate it Avoid and Peter Lynch rates it Hold. Each model calculates its own fair value and margin of safety; create a free account to see the exact buy price behind every verdict.

HO

Robinhood Markets, Inc.

HOOD

Financial Services · Financial - Capital Markets · NASDAQ

$111.15

P/E 41.1×

CEO

Vladimir Tenev

Sector

Financial Services

Industry

Financial - Capital Markets

Robinhood Markets, Inc. operates a financial services platform available to users throughout the United States. This platform empowers individuals to engage in a wide array of investments, encompassing common stocks, exchange-traded funds (ETFs), options contracts, gold, and various cryptocurrencies. Beyond its core trading functionalities, the company dedicates efforts to providing educational and informational resources. These include "Snacks," a concise daily summary of business news; "Learn," an extensive digital library offering guides, tutorials, and a comprehensive financial dictionary; and "Newsfeeds," which grants complimentary access to premium financial journalism from reputable sources like Barron's, Reuters, and The Wall Street Journal. Additionally, the platform supports users with tools such as customizable watchlists and alert systems for monitoring specific securities, ETFs, and digital assets. It also provides cash management services. For new customers, particularly those who have not yet made their initial investment, Robinhood offers personalized first trade recommendations. Robinhood Markets, Inc. was established in 2013 and maintains its principal operations from Menlo Park, California.

Investor scorecard

How the four investors rate Robinhood Markets, Inc.

3 of 4 frameworks urge caution

Warren Buffett
61%Avoid
Benjamin Graham
21%Avoid
Peter Lynch
83%Hold
Phil Town (Rule #1)
36%Avoid

Investor model analysis

Details locked

At $111.15, 3 of 4 frameworks say Avoid

Business Quality52/100

Intrinsic Value (DCF)

Warren Buffett's valuation model · select an investor above to switch

Intrinsic Value

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Buy Below

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Strong Buy

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Margin of Safety

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Insider & congress activity

Are insiders buying HOOD?

Over recent SEC Form 4 filings, HOOD insiders bought $0 and sold $129.4M of stock across 69 open-market trades. Insiders sell for many reasons, but they buy for one.

Bought $0Sold $129.4M
Recent open-market insider trades for HOOD
InsiderActionSharesValueDate
Tenev VladimirChief Executive OfficerSell239,532$30.0MSep 22, 2026
Tenev VladimirChief Executive OfficerSell1,302$164KSep 22, 2026
Tenev VladimirChief Executive OfficerSell248,136$31.2MSep 21, 2026
Tenev VladimirChief Executive OfficerSell11,030$1.4MSep 21, 2026
Verma ShivChief Financial OfficerSell300$32KSep 15, 2026

Members of Congress have also reported 33 trades in HOOD. See the full insider & congress timeline.

Source: SEC Form 4 filings. Open-market buys & sells only. Not investment advice.

See the interactive insider chart & every trade

Scenario analysis

Bear, base & bull

Three growth assumptions, three fair values — and where today's price lands

What's working

Key strengths

Identified by Buffett framework analysis

Return on Equity

Gross Margin

Net Profit Margin

Risk factors & concerns — free account

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Company financials

5-Year Financials

Income statement highlights — annual, USD

Metric20252024202320222021
Revenue$4.5B
$3.0B
$1.9B
$1.4B
$1.8B
Rev. Growth+51.6%+58.2%+37.3%-25.2%—
Net Income$1.9B$1.4B-$541M-$1.0B-$3.7B
Net Margin42.1%47.8%-29.0%-75.7%-203.1%
EPS (Diluted)$2.12$1.60$-0.61$-1.17$-4.27
Free Cash FlowLocked — upgrade to viewLocked — upgrade to viewLocked — upgrade to viewLocked — upgrade to viewLocked — upgrade to view

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Educational Use Only · Not Financial Advice

Analysis, scores, valuations, and buy zones are derived from publicly documented investor frameworks (Buffett, Lynch, Benjamin Graham, Phil Town) for learning purposes only. They are not recommendations from licensed financial advisors. Past performance does not guarantee future results. Prices may be delayed up to 15 minutes. Always conduct your own research before making any investment decisions.