Charles Schwab: Increasing Fair Value by 4%; Modest Business Changes Mentioned at Investor Day

We're increasing our fair value estimate for Charles Schwab to $76 per share from $73. This implies a price/forward earnings multiple of about 21 times and price/book multiple of about 4.4 times. Of the $3 increase in our fair value estimate, approximately $1 was from earnings since our previous valuation update; the remaining $2 was from miscellaneous adjustments, such as increasing our forecasts for near-term interest rates and medium-term return on capital.