We publish no single base value for Franklin Resources. Our valuation methods put it between $20.94 and $22.53 a share. The valuation code's reason: no point fair value: the two anchors behind it compound the same growth rate and differ only in how they end — a perpetuity at the terminal rate against a multiple on the final year — so the midpoint between them measures terminal treatment rather than what the business is worth. The published range is the same reading with the false precision removed: read it as the span the method supports, and treat neither edge as a point estimate.
| Method | Value | vs price | Basis |
|---|---|---|---|
| Discounted cash flow | $20.94 | -41.6% | free cash flow $807.90m, growth 3.9% for 5 years, then fading to 3% over 5 more, discounted at 11.16%; stress floor $15.10 |
| Exit multiple (P/E) | $22.53 | -37.2% | earnings per share $3.23 valued at 10× (the 10× floor; the stock's own median P/E is 8.3×) in 5 years, discounted back |
| Sum of the parts | — | — | no sum of the parts: this run holds no segment disclosure for the name |
| Price to sales | — | — | not reached: the cash-flow or earnings methods produced an anchor, so this fallback was not run |
| Tangible book | — | — | used only for lenders, where book value is the business |
| Price to FFO (REITs) | — | — | used only for REITs |
Each working is rebuilt by code from the valuation's own figures and checked against the published value.
The discount rate:
| Risk-free rate | 5.13% (10-year US Treasury yield) |
| Company's own beta | 1.56 (5 years of monthly returns against the S&P 500; standard error 0.19) |
| Peer beta | 1.44 (median of 11 S&P 500 Asset Management & Custody Banks companies) |
| Blend of own and peers | 1.51 (59% own, 41% peers, weighted by how precisely the company's own beta is measured) |
| Adjusted beta | 1.34 (0.67 × 1.51 + 0.33, pulled toward the market's 1.0) |
| Equity risk premium | 4.5% |
| Discount rate = risk-free + adjusted beta × premium | 11.16% |
Free cash flow grows 3.90% a year for 5 years, then fades in equal steps toward 3% over 5 more; each year is discounted by 1 ÷ (1 + rate)^year:
| Year | Growth | Free cash flow | Discount factor | Present value |
|---|---|---|---|---|
| Now | — | $807.90m | — | — |
| Year 1 | 3.90% | $839.41m | 0.8996 | $755.14m |
| Year 2 | 3.90% | $872.15m | 0.8093 | $705.82m |
| Year 3 | 3.90% | $906.16m | 0.7280 | $659.72m |
| Year 4 | 3.90% | $941.50m | 0.6549 | $616.63m |
| Year 5 | 3.90% | $978.22m | 0.5892 | $576.36m |
| Year 6 | 3.75% | $1.01bn | 0.5300 | $537.94m |
| Year 7 | 3.60% | $1.05bn | 0.4768 | $501.35m |
| Year 8 | 3.45% | $1.09bn | 0.4290 | $466.58m |
| Year 9 | 3.30% | $1.12bn | 0.3859 | $433.59m |
| Year 10 | 3.15% | $1.16bn | 0.3471 | $402.34m |
| Terminal value = year-10 cash flow × (1 + 3%) ÷ (11.16% − 3%) | $14.63bn |
| Terminal value in today's money | $5.08bn |
| Present value of years 1–10 | $5.66bn |
| Total present value | $10.73bn |
| Shares outstanding | 512.50m |
| Value per share = total ÷ shares | $20.94 |
How the DCF value moves with the discount rate and the starting growth (the middle cell is the published value):
| Discount rate | Growth -1.1% | Growth 3.9% | Growth 8.9% |
|---|---|---|---|
| 10.16% | $17.83 | $23.90 | — |
| 11.16% | $15.75 | $20.94 | $27.82 |
| 12.16% | $14.12 | $18.63 | $24.58 |
The same DCF at each beta, starting growth unchanged:
| Beta | Value | Discount rate | DCF value |
|---|---|---|---|
| Company's own beta | 1.56 | 12.15% | $18.65 |
| Peer beta | 1.44 | 11.61% | $19.84 |
| Adjusted beta (used) | 1.34 | 11.16% | $20.94 |
Earnings per share grow on the same fading path as the DCF:
| Year | Growth | Earnings per share |
|---|---|---|
| Now | — | $3.23 |
| Year 1 | 3.90% | $3.35 |
| Year 2 | 3.58% | $3.47 |
| Year 3 | 3.38% | $3.59 |
| Year 4 | 3.25% | $3.71 |
| Year 5 | 3.16% | $3.82 |
| Earnings per share in year 5 | $3.82 |
| Exit P/E (the 10× floor; the stock's own median P/E is 8.3×) | 10× |
| Value in 5 years = earnings × P/E | $38.25 |
| Discounted at 11.16% over 5 years: ÷ 1.6972 | $22.53 |
We publish no single base value for Franklin Resources. Our valuation methods put it between $20.94 and $22.53 a share. The valuation code's reason: no point fair value: the two anchors behind it compound the same growth rate and differ only in how they end — a perpetuity at the terminal rate against a multiple on the final year — so the midpoint between them measures terminal treatment rather than what the business is worth. The published range is the same reading with the false precision removed: read it as the span the method supports, and treat neither edge as a point estimate.
One-year price simulation: a 10% chance the price is below $26.55 and a 10% chance it is above $55.52 in a year; a 60% chance it is higher than today's $35.86, from 28.64% volatility. The simulation assumes the price drifts up at our discount rate of 11.16% a year.
At $35.86 the price implies free cash flow growing 13.4% a year for five years and then fading toward 3% over five more; its revenue has grown 3.9%.
| Week | Price | Base value |
|---|---|---|
| 2 Oct 2026 | $32.81 | — |
| 9 Oct 2026 | $32.00 | — |
| 16 Oct 2026 | $30.98 | — |
| 23 Oct 2026 | $31.06 | — |
| 30 Oct 2026 | $31.64 | — |
| 6 Nov 2026 | $33.73 | — |
| 12 Nov 2026 | $35.86 | — |
Data as of 12 Nov 2026; financials to 30 Sep 2026. Sources: company filings via EODHD, SEC EDGAR, US Treasury. How these values are computed. Not investment advice.
Run a full Desk Run on BEN · Franklin Resources company page · Call and put prices