Franklin Resources (BEN) has drawn fresh attention after presenting at the Morgan Stanley US Financials Conference 2026, shortly after the launch of its Franklin BSP CLO ETF and a new partnership focused on tokenized fund access.

Those launches and partnerships have arrived during a strong run for the stock, with the 90 day share price return of 30.5% helping lift the year to date share price return to 35.0%, while the 1 year total shareholder return is 49.1%.

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With the stock up sharply and trading slightly above the average analyst price target but at a modest intrinsic discount, the key question now is straightforward: is Franklin Resources undervalued or is the market already pricing in future growth?

Most Popular Narrative: 17.4% Overvalued

Franklin Resources closed at $32.13 compared with a most widely followed fair value estimate of $27.36, so the narrative flags meaningful downside versus the current price.

The company is utilizing recent technology innovations such as tokenized funds and blockchain-enabled products like Benji and is already in active discussions with distributors about white-labeling its digital asset wallet. These technology investments are expected to lower transaction and operating costs and could open new digital channels for distribution, enhancing net margins over time.

Want to see what sits behind that valuation gap? The narrative leans on earnings expansion, fatter margins and a lower future earnings multiple than many peers. Curious which combinations of flatline revenue assumptions and margin shifts drive that $27.36 figure?

Result: Fair Value of $27.36 (OVERVALUED)

However, there are still pressure points to watch, including ongoing fee compression and the risk that acquisitions or digital projects deliver weaker economics than expected.

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Another View: Cash Flows Point the Other Way

While the consensus narrative sees Franklin Resources as 17.4% overvalued at $32.13 versus a $27.36 fair value, our DCF model comes to a different conclusion, with a future cash flow value of $35.50 suggesting the shares are trading at a discount instead.

Two valuation frameworks pointing in opposite directions puts the focus back on your assumptions about future cash flows, margins and risk. Which story feels closer to how you see Franklin Resources evolving over time?

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Franklin Resources for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 44 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Next Steps

Conflicted by the mix of risks and rewards in the story so far? Take a close look at the data now and shape your own view with 3 key rewards and 2 important warning signs

Looking for more investment ideas?

If you stop with just one stock, you could miss out on other opportunities that fit your style, so take a few minutes to scan these ideas.

• Target potential bargains with proven fundamentals by checking companies highlighted in the 44 high quality undervalued stocks.
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• Sleep easier at night by focusing on companies within the 70 resilient stocks with low risk scores that score well on stability and downside protection.

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.