A Look At Franklin Resources (BEN) Valuation After New Tokenized Money Market Fund Features

Franklin Resources (BEN) is in focus after its Franklin Templeton unit reshaped two institutional money market funds to support tokenized finance uses and blockchain enabled distribution, including a new Digital Institutional Share Class.

See our latest analysis for Franklin Resources.

Those blockchain focused fund changes arrive during a period of stronger momentum, with a 30 day share price return of 10.65%, a 90 day share price return of 16.56% and a 1 year total shareholder return of 41.84% at a share price of US$25.97.

If tokenized finance has you thinking about what else is reshaping capital markets, it could be worth scanning fast growing stocks with high insider ownership as a source of fresh stock ideas.

So, with Franklin Resources posting a 41.84% 1-year total shareholder return and a share price close to its analyst target, is there still mispricing here, or has the market already incorporated any potential future growth?

Most Popular Narrative: 5% Overvalued

With Franklin Resources trading at US$25.97 against a narrative fair value of about US$24.73, the current price sits slightly above that intrinsic estimate. This estimate is built on detailed assumptions about earnings, margins and valuation multiples.

The analysts have a consensus price target of $25.0 for Franklin Resources based on their expectations of its future earnings growth, profit margins and other risk factors. However, there is a degree of disagreement amongst analysts, with the most bullish reporting a price target of $31.0, and the most bearish reporting a price target of just $19.0.

Read the complete narrative.

Curious how modest revenue growth, a large step up in earnings and a lower future P/E all fit together? The valuation hinges on those moving parts. Want to see which of them does the heavy lifting in the fair value math? Read the full story behind the numbers.

Result: Fair Value of $24.73 (OVERVALUED)

Have a read of the narrative in full and understand what’s behind the forecasts.

However, there are still clear pressure points, with persistent client outflows and fee compression both capable of undermining the earnings path that supports this fair value narrative.

Find out about the key risks to this Franklin Resources narrative.

Build Your Own Franklin Resources Narrative

If you see the numbers differently or would rather test your own assumptions, you can build a custom view of Franklin Resources in just a few minutes, starting with Do it your way.

A great starting point for your Franklin Resources research is our analysis highlighting 1 key reward and 2 important warning signs that could impact your investment decision.

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If you stop at Franklin Resources, you could miss other angles entirely. Take a few minutes to scan fresh ideas that match how you like to invest.

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.

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