Full year earnings put Freedom Holding (FRHC) in focus

Freedom Holding (FRHC) has drawn fresh attention after reporting full year results to March 31, 2026, with revenue of US$2.19b and net income of US$153.33m.

The share price has moved around the earnings release, with a 1-day share price return of 0.99% but a 7-day share price decline of 11.83%. Year to date, the share price return is up 13.00%, and the 3-year total shareholder return stands at 71.77%, suggesting longer term holders have still seen substantial gains even after recent weakness.

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With earnings per share doubling year on year and the stock still up 13% in 2026 despite a recent pullback, you have to ask: is Freedom Holding now undervalued, or is the market already pricing in future growth?

Preferred P/E of 56.1x: Is it justified?

On a P/E of 56.1x, Freedom Holding trades well above both its immediate peer group and the broader US Capital Markets industry, even after the recent share price pullback to $140.39.

The P/E multiple compares the current share price to earnings per share. A higher figure often points to the market placing a richer price on each dollar of current earnings. For a diversified financial services company like Freedom Holding, this usually reflects expectations around future profitability, business mix and the perceived quality or sustainability of recent earnings.

Here, the picture is mixed. On one hand, earnings grew 101% over the past year and net profit margins widened from 5.4% to 9.4%. On the other hand, earnings over the past 5 years declined by 12.8% per year and the company has a high level of non cash earnings, which can make current profit look less straightforward when assessing what investors are paying for.

Compared with the US Capital Markets industry average P/E of 39.2x, Freedom Holding’s 56.1x multiple is significantly richer. It is also far higher than the peer average P/E of 16.2x, which suggests the stock is priced at a clear premium to similar companies rather than sitting in line with the pack.

Result: Price-to-earnings of 56.1x (OVERVALUED)

However, you also need to weigh concentration in Kazakhstan and the premium P/E, because any regulatory shock or earnings disappointment could quickly challenge the current narrative.

Another way to look at value

The SWS DCF model paints a very different picture. On this view, Freedom Holding’s current share price of $140.39 sits well above an estimated future cash flow value of about $60, which screens as overvalued. That kind of gap can matter if sentiment around earnings starts to cool.

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Freedom Holding 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 46 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

Uncertain whether the optimism or the caution in this story should stand out more, and keen to act while the market is still reacting, you can size up both sides of the argument through the 1 key reward and 3 important warning signs.

Ready to explore more investment ideas?

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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.