Charles Schwab stock (NYSE: SCHW) has lost 38% YTD as compared to the 7% rise in the S&P500 index over the same period. The recent stock volatility was due to the fear of a banking crisis after the collapse of Silicon Valley Bank. That said, at its current price of $52 per share, it is trading 29% below its fair value of $73 – Trefis’ estimate for Charles Schwab’s valuation.
The company missed the street expectations in the fourth quarter of 2022, despite a 17% y-o-y increase in the net revenues to $5.5 billion. The revenues were up due to a 41% growth in the net interest income, partially offset by a 12% drop in the trading revenues and a 5% decrease in the asset management & administration fees. Overall, the adjusted net income increased 26% y-o-y to $1.82 billion.
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