Is Charles Schwab (SCHW) Undervalued Following Its Crypto Expansion?

Charles Schwab (SCHW) has moved to expand Schwab Crypto by planning to add Solana, Avalanche and Chainlink, giving clients more token choices within the same platform where they already trade bitcoin and ethereum.

Against this crypto expansion backdrop, Charles Schwab’s recent share price return has cooled in the very short term, with the stock down 1.2% over one day and 1.6% over seven days, even as its 90 day share price return of 23.7% and 1 year total shareholder return of 12.7% point to stronger momentum building over a longer horizon.

Scan how Charles Schwab’s crypto push compares with other brokers leaning into digital assets through a curated set of 20 cryptocurrency and blockchain stocks.

Charles Schwab now trades around US$108, while the average analyst price target sits closer to US$125 and internal fair value work points to a smaller discount. Is the current quote already generous, or does it still leave a margin of safety?

Most Popular Narrative: 13.6% Undervalued

The most widely followed narrative for Charles Schwab puts fair value at $125, compared with the last close at $108.05, framing the recent crypto moves against a broader earnings and margin story.

Ongoing digital transformation and operational enhancements (e.g., AI-powered efficiency and automation) are expected to sustainably reduce cost-to-serve and improve client experience at scale, underpinning long-term operating margin expansion. Schwab's industry-leading scale, continued penetration with independent advisors via its custody platform, and launch of new offerings (such as retail alternatives and digital asset products) are expected to enhance recurring fee-based revenues and cement competitive positioning, supporting earnings resilience and long-term profitability.