Risk factor
Low price volatility
Profitability factor
Strong margins and returns
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Data is available to registered users only | Data is available to registered users only | Data is available to registered users only | Data is available to registered users only |
Data is available to registered users only | Data is available to registered users only | Data is available to registered users only | Data is available to registered users only |
Data is available to registered users only | Data is available to registered users only | Data is available to registered users only | Data is available to registered users only |
About
Houlihan Lokey, Inc. is a prominent global investment banking firm offering a comprehensive suite of financial advisory services. These include expertise in mergers and acquisitions (M&A), capital markets, financial restructuring, and valuation. The company's operations are divided into three core segments: The Corporate Finance division provides broad financial guidance. It assists both public and private entities with strategic buy-side and sell-side transactions and a variety of capital-raising activities, such as leveraged loans, private mezzanine debt, high-yield debt, initial public offerings (IPOs), follow-on offerings, convertibles, equity private placements, and private equity investments. This segment also advises financial sponsors on diverse deal structures and liability management initiatives. The Financial Restructuring segment guides debtors, creditors, and other involved parties through complex recapitalization and deleveraging processes. Its specialized advisory services encompass the design, negotiation, and confirmation of reorganization plans, the structuring and analysis of exchange offers, corporate viability assessments, expert testimony for dispute resolution, and the procurement of debtor-in-possession (DIP) financing. The Financial and Valuation Advisory group specializes in appraising various asset types, including entire businesses, illiquid debt and equity securities, and intellectual property. It delivers critical fairness opinions for M&A and other transactions, as well as solvency opinions for corporate spin-offs and dividend recapitalizations, alongside other financial assessments. This segment further contributes to dispute resolution services. Established in 1972, Houlihan Lokey serves a diverse clientele, including corporations, institutions, and governmental entities. Headquartered in Los Angeles, California, the firm maintains a significant international presence with offices located across the United States, Europe, the Middle East, and the Asia-Pacific region.
Company Valuation
Based on key historical and expected multiples, the stock is overvalued relative to its peers. In particular, the stock is overpriced on P/E, of fair value on EV/EBITDA,
Target Price
The average target price of HLI is 177 and suggests 31.8% upside potential. Usually, this means a BUY recommendation among investment firms, or a recommendation to increa