Assessing Houlihan Lokey (HLI) Valuation After Recent Shareholder Return Shift

Houlihan Lokey (HLI) is showing some movement lately, catching the eye of investors who like to keep tabs on valuation shifts and overall performance. The stock’s recent returns have sparked conversation about its broader position in financial services.

See our latest analysis for Houlihan Lokey.

After a steady rise earlier in the year, Houlihan Lokey’s 1-year total shareholder return has cooled to -3.8%. Its share price holds at $180.33, and longer-term gains remain impressive. That shift suggests investors are considering both the recent run-up and the firm's strong fundamentals.

If you’re rethinking your game plan after these moves, it could be a smart moment to discover fast growing stocks with high insider ownership

With shares now trading below analyst price targets and holding onto solid long-term gains, the question facing investors is clear: is Houlihan Lokey overlooked by the market, or is every bit of future growth already reflected in the price?

Most Popular Narrative: 16% Undervalued

The most followed analysis puts Houlihan Lokey’s fair value at $214.57, significantly above the last close of $180.33. This gap opens the door for a closer look at the story driving the higher target right now.

Ongoing global expansion, sector diversification, and talent recruitment position Houlihan Lokey for sustained revenue growth and increased market share. Strong pipelines from succession planning, resilient restructuring activity, and enhanced client engagement are stabilizing fee income and supporting earnings despite macroeconomic shifts.

Read the complete narrative.

Want to unpack how expanding margins and international ambitions are changing the game? The narrative focuses on optimistic forecasts for profit expansion and aggressive growth that are not priced in yet. Discover which bold assumptions underlie this bullish valuation.

Result: Fair Value of $214.57 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, the bullish outlook could be challenged if deal flow slows outside the U.S., or if high costs continue to pressure profit margins.

Find out about the key risks to this Houlihan Lokey narrative.

Another View: Finding Limits With the Market’s Ratio

While analysts point to upside, the market is putting a price tag on Houlihan Lokey that is much higher than its sector peers. The company is trading at a price-to-earnings ratio of 29.6x, versus an industry average of 17.6x and a fair ratio of 16.4x. This suggests investors are paying a steep premium. Could this optimism run too far, or is there more to unlock?

Story Continues

See what the numbers say about this price — find out in our valuation breakdown.NYSE:HLI PE Ratio as at Nov 2025

Build Your Own Houlihan Lokey Narrative

If you want to dig deeper or see things differently, you can analyze the numbers for yourself and shape your own perspective in just a few minutes. Do it your way

A good starting point is our analysis highlighting 2 key rewards investors are optimistic about regarding Houlihan Lokey.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include HLI.

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