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Houlihan Lokey (HLI) Stock Fundamentals, Analysis & Risk Signals

Health score, price, valuation, risk signals, and key metrics at a glance.

Houlihan Lokey
NYSE•Financial Services•Capital Markets
$146.74+0.30(<0.01%)Pre-market
Market Cap
$9.75B
P/E
24.2x
P/S
3.8x
P/B
4.2x

Houlihan Lokey, Inc., an investment banking company, provides merger and acquisition (M&A), capital market, financial restructurings and liability management, and financial and valuation advisory services worldwide. The company operates in three segments: Corporate Finance (CF), Financial Restructuring (FR), and Financial and Valuation Advisory (FVA). The CF segment offers general financial advisory services; and advises public and private institutions, including financial sponsors on buy-side and sell-side M&A transactions, debt and equity financings in both the private and public markets, and other corporate finance transactions. The FR segment advises debtors, creditors, and other parties-in-interest related to recapitalization/deleveraging transactions. This segment also provides a range of advisory services, such as structuring, negotiation, and confirmation of plans of reorganization; structuring and analysis of exchange offers; liability management transactions; corporate viability assessment; dispute resolution and expert testimony; and procuring debtor-in-possession financing. The FVA segment provides valuation services to companies; debt and equity interests comprising illiquid investments; and other assets and liabilities. This segment also offers fairness opinions in connection with mergers and acquisitions and other transactions; solvency opinions in connection with corporate spin-offs and dividend recapitalizations; other types of financial opinions; and diligence, tax, transaction accounting, and other financial advisory services, as well as dispute resolution services. It serves corporations, financial sponsors, and government agencies. Houlihan Lokey, Inc. was incorporated in 1972 and is headquartered in Los Angeles, California.

C

How this company scores

AverageMetricSide Score: 57/100

Strongest: Profitability (19/25); weakest: Growth (9/25).

Profitability19/25
Growth9/25
Balance Sheet & Red Flags15/25
Cash & Earnings Quality14/25
Strengths
Strong marginsHigh ROEInterest easily coveredCash-backed earnings

Valuation vs. 5-year range

Today's multiple positioned against its own trailing range — a visual premium/discount check.

P/E · 24.2x5y range 10.0x – 32.4x
P/E 24.2x · near its 20-quarter median

Currently near its 20-quarter median.

P/S · 3.8x5y range 2.1x – 5.4x
P/S 3.8x · near its 20-quarter median

Currently near its 20-quarter median.

P/B · 4.2x5y range 3.3x – 6.1x

Watch items

Data-driven signals worth keeping an eye on across the last 8 quarters

Some Concerns

Cash Burn

Watch

FCF turned negative in 2 of the last 8 quarters — occasional cash consumption.

Price & Volume
Market Cap $9.75B

Metrics at a Glance

as of September 2026

Revenue & Profit

Revenue, EBITDA, operating income, net income, EPS, and shares

TTM Revenue
$2.56B
0%
Q. Revenue
$692.00M
5%
TTM EBITDA
$552.22M
3%
TTM Op. Income
$517.88M
0%
Q. Op. Income
$154.00M
2%
TTM Net Income
$403.38M
3Q
Q. Net Income
$109.00M
2%
EPS
$1.64
2%
Shares Out.
$66.60M
2Q
$2.56B in TTM revenue declined 0.4% YoY, reaching $692.00M last quarter. TTM EBITDA of $552.22M and TTM operating income of $517.88M show growth is flowing through to the bottom line. TTM net income of $403.38M means revenue is converting into profit. Over the past year, TTM revenue is down 0% — an improving trend.

Margins

Gross, EBITDA, operating, and net margin trends

EBITDA Margin
23.7%
3%
Op. Margin
22.3%
3%
Net Margin
15.8%
7%
Op. margin of 22.3% is down 0.7% YoY — costs are rising relative to revenue. Net margin at 15.8% Over the past year, operating margin is down 3% — an improving trend.

Price Ratios

P/E, P/S, P/B, EV/EBITDA, FCF yield, and earnings yield

P/E Ratio
24.2x
25%
P/S Ratio
3.8x
29%
P/B Ratio
4.2x
31%
At 24.2x P/E, the stock trades within typical market levels. P/S of 3.8x and P/B of 4.2x provide additional context. Use the growth and margin sections to judge whether the multiple is justified. Over the past year, P/E is down 25% — a weakening trend.

Assets & Liabilities

Total assets, cash, debt, book value, and leverage

Total Assets
$3.98B
5%
Cash
$837.00M
9%
Long-Term Debt
N/A
Book Value
$2.31B
3%
D/E Ratio
N/A
Debt/EBITDA
0.0

Cash Flow

Operating cash flow, free cash flow, FCF margin, and earnings quality

Op. Cash Flow
$252.00M
22%
TTM Free Cash Flow
$401.83M
4Q
FCF Margin
15.7%
4Q
FCF / Net Income
1.0
4Q
TTM FCF of $401.83M on $252.00M in operating cash flow. The FCF / Net Income ratio of 1.0x means free cash flow covers net income — earnings are backed by cash. Across the last 8 quarters, free cash flow has fallen for 4 consecutive quarters — a weakening trend.

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· near its 20-quarter median

Currently near its 20-quarter median.