Houlihan Lokey (HLI) stock price is $147.87, down 0.36% on the day, as of Nov 10, 2026. It has a market cap of $9.82Bn and a P/E ratio of 24.43, and is classified in the Investment Banking industry (Financial Services sector).
Enterprise Value
Margins
P/FCF
Key Stats
Market Cap9.82 Bn
P/E24.43
FCF (Yr)681.82 Mn
ROA (Yr)10.44
EV to EBIT11.56
Net Income (Yr)425.70 Mn
Enterprise Value5.99 Bn
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About
Houlihan Lokey, Inc. is a leading global independent investment bank that provides advisory services in mergers and acquisitions, capital markets, financial restructuring, and financial and valuation advisory. The firm operates through offices in the Americas, Europe, Asia, Australia, and the Middle East, serving corporations, financial sponsors, and government agencies worldwide.
The company generates revenue primarily through fees earned for advisory engagements,…
Houlihan Lokey, Inc. is a leading global independent investment bank that provides advisory services in mergers and acquisitions, capital markets, financial restructuring, and financial and valuation advisory. The firm operates through offices in the Americas, Europe, Asia, Australia, and the Middle East, serving corporations, financial sponsors, and government agencies worldwide.
The company generates revenue primarily through fees earned for advisory engagements, including sell side and buy side mergers and acquisitions advice, capital raising and financing solutions, out of court and in court restructuring assignments, and valuation and opinion services. Its clients range from closely held businesses to Fortune Global 500 corporations, as well as private equity funds and public sector entities.
The company operates through the following segments: Corporate Finance, Financial Restructuring, and Financial and Valuation Advisory.
The Corporate Finance segment advises clients on mergers and acquisitions, including sell side and buy side transactions, and provides capital solutions for raising debt and equity. The segment emphasizes mid cap transactions, leverages deep industry expertise across sectors such as business services, consumer, energy, financial services, fintech, healthcare, industrials, real estate, lodging and leisure, and technology, and utilizes a global platform to deliver advice. Capital solutions professionals help clients design optimal capital structures and access traditional and non traditional sources of financing.
The Financial Restructuring segment provides advisory services for out of court and in court restructurings, liability management, and distressed M&A transactions. The team works with companies, creditor groups, and other stakeholders in the United States, Canada, Europe, Asia, Australia, the Middle East, Latin America, and Africa to develop and execute restructuring plans. FR professionals also support asset sales, changes of control, and financing needs during periods of financial stress.
The Financial and Valuation Advisory segment delivers valuation opinions, financial analysis, tax and diligence services, and dispute resolution support for mergers and acquisitions, divestitures, recapitalizations, and other transactions. Professionals in this segment produce independent studies that withstand legal and regulatory scrutiny and assist boards, special committees, and investors with complex valuation and accounting matters.
Houlihan Lokey, Inc. holds a strong position as one of the largest independent investment banks, competing with bulge bracket firms such as Goldman Sachs and Morgan Stanley, as well as boutique advisors like Jefferies, Lazard, Moelis & Company, and Evercore. Its competitive advantages stem from a culture of senior level involvement, deep industry expertise, an entrepreneurial approach, and broad employee ownership that aligns interests of staff and shareholders. The firm’s independence from lending and trading activities reduces conflicts of interest and allows it to provide objective advice across its three core practices.
The company serves a diverse client base that includes privately held companies, publicly traded corporations, private equity firms, venture capital investors, and government agencies. Over recent years it has advised more than two thousand clients annually, ranging from small family owned businesses to Fortune Global 500 enterprises.
Sector:Financial ServicesSector rationaleHoulihan Lokey operates as an investment bank providing advisory services in mergers and acquisitions, capital markets, and financial restructuring. Its revenue is generated through fees for these financial advisory engagements, which falls directly under the Investment Banking and Financial Advisory industries within the Financial Services sector.Industries:Investment BankingInvestment BankingPrimaryHoulihan Lokey is a global independent investment bank that earns revenue through advisory fees for mergers and acquisitions, capital raising, and financial restructuring. Its Corporate Finance segment specifically provides sell-side and buy-side M&A advice and capital solutions for raising debt and equity.Financial AdvisoryFinancial AdvisorySecondaryThe Financial and Valuation Advisory segment provides specialized financial analysis, valuation opinions, and diligence services to boards, special committees, and investors. These services involve providing tailored financial advice and independent studies for complex accounting and valuation matters.Classified using BQ-MICSCIK: 0001302215
Bull & bear
Investment Thesis
▲ Bull case
Houlihan Lokey's record fiscal year 2026 results, with $2.6 billion in revenue and a 20% increase in adjusted EPS, demonstrate the company's resilience and strong market position. The company's diversified business model, with record revenues in Corporate Finance, Financial Valuation and Advisory, and Financial Restructuring, positions it well to navigate volatile market conditions. The company's record level of backlog and pipeline, along with a record number of managing directors and corporate acquisition opportunities, suggests strong growth prospects for fiscal year 2027 and beyond. The company's recent acquisitions and promotions of managing directors further strengthen its talent pool and expertise, enhancing its ability to deliver excellence to clients and drive future growth.
The company's Financial Restructuring business is poised for elevated performance in fiscal year 2027 due to multiple tailwinds, including widening credit spreads, dislocation in private credit, and energy volatility. These factors are driving increased activity levels and notable recent wins, leading to higher expectations for the business. The company's ability to capitalize on these market dynamics and maintain elevated performance levels in Financial Restructuring presents a significant growth opportunity.
Houlihan Lokey's global workforce and diverse expertise provide a competitive advantage in the investment banking advisory space. The company's strong hiring market for senior talent and active acquisition pipeline indicate a commitment to further strengthening its platform. The company's recent hires, such as Eric Crowley in the Global Technology Group and Dave Buscaglia in the Business Services Group, bring valuable industry experience and strategic insight, enhancing the firm's capabilities and client offerings. These additions position Houlihan Lokey to better serve clients in rapidly evolving markets and achieve their strategic objectives.
The company's Capital Solutions business performed well in fiscal year 2026 and enters fiscal year 2027 with strong backlog and high expectations. This segment's growth prospects, combined with the company's diversified business model, provide a solid foundation for sustained growth. The company's ability to maintain a long-term target of 61.5% for its adjusted compensation expense ratio and similar growth in adjusted non-compensation expenses in fiscal 2027 indicates disciplined cost management and operational efficiency.
Houlihan Lokey's strategic investments in technology, particularly in its Financial and Valuation Advisory business, position the company to capitalize on productivity gains and growing demand for valuation work. The company's data-driven perspectives, derived from a vast amount of marks, enhance its models and competitive advantage. The firm's commitment to investing in technology and its ability to spread these investments across multiple businesses underscore its long-term growth potential.
Houlihan Lokey's record fiscal year 2026 results, with $2.6 billion in revenue and a 20% increase in adjusted EPS, demonstrate the company's resilience and strong market position. The company's diversified business model, with record revenues in Corporate Finance, Financial Valuation and Advisory, and Financial Restructuring, positions it well to navigate volatile market conditions. The company's record level of backlog and pipeline, along with a record number of managing directors and corporate acquisition opportunities, suggests strong growth prospects for fiscal year 2027 and beyond. The company's recent acquisitions and promotions of managing directors further strengthen its talent pool and expertise, enhancing its ability to deliver excellence to clients and drive future growth.
The company's Financial Restructuring business is poised for elevated performance in fiscal year 2027 due to multiple tailwinds, including widening credit spreads, dislocation in private credit, and energy volatility. These factors are driving increased activity levels and notable recent wins, leading to higher expectations for the business. The company's ability to capitalize on these market dynamics and maintain elevated performance levels in Financial Restructuring presents a significant growth opportunity.
Houlihan Lokey's global workforce and diverse expertise provide a competitive advantage in the investment banking advisory space. The company's strong hiring market for senior talent and active acquisition pipeline indicate a commitment to further strengthening its platform. The company's recent hires, such as Eric Crowley in the Global Technology Group and Dave Buscaglia in the Business Services Group, bring valuable industry experience and strategic insight, enhancing the firm's capabilities and client offerings. These additions position Houlihan Lokey to better serve clients in rapidly evolving markets and achieve their strategic objectives.
The company's Capital Solutions business performed well in fiscal year 2026 and enters fiscal year 2027 with strong backlog and high expectations. This segment's growth prospects, combined with the company's diversified business model, provide a solid foundation for sustained growth. The company's ability to maintain a long-term target of 61.5% for its adjusted compensation expense ratio and similar growth in adjusted non-compensation expenses in fiscal 2027 indicates disciplined cost management and operational efficiency.
Houlihan Lokey's strategic investments in technology, particularly in its Financial and Valuation Advisory business, position the company to capitalize on productivity gains and growing demand for valuation work. The company's data-driven perspectives, derived from a vast amount of marks, enhance its models and competitive advantage. The firm's commitment to investing in technology and its ability to spread these investments across multiple businesses underscore its long-term growth potential.
Houlihan Lokey's fourth quarter results were impacted by recent external market disruptions, including renewed geopolitical uncertainty from the conflict in the Middle East and market volatility affecting the software sector. These factors could continue to pose risks to the company's near-term growth prospects, particularly in its Corporate Finance and Financial Valuation and Advisory businesses. The company's reliance on macroeconomic conditions and the timing of revenues introduces volatility and uncertainty into its financial performance.
The company's Financial Restructuring business experienced a decrease in average transaction fees on closed deals in the fourth quarter, which could indicate potential pricing pressures or a shift in the mix of transactions. While the company attributes this to quarterly variations, sustained declines in average transaction fees could negatively impact the business's revenue and profitability. The company's ability to maintain elevated performance levels in Financial Restructuring will depend on its capacity to manage these pricing dynamics and secure larger transactions.
Houlihan Lokey's Corporate Finance business faces challenges in the technology sector, particularly in software, where there is uncertainty about the long-term impact of market dislocations. The company's ability to navigate these challenges and adapt to changing market conditions will be critical to its growth prospects. The company's reliance on the technology sector for a significant portion of its revenue exposes it to sector-specific risks and volatility.
The company's reliance on acquisitions for growth and platform strengthening introduces integration risks and potential cultural mismatches. While the company emphasizes cultural fit as a key criterion for acquisitions, successful integration and realization of synergies are not guaranteed. The company's ability to execute on its acquisition strategy and integrate new talent effectively will be crucial to its long-term success.
Houlihan Lokey's exposure to geopolitical risks, particularly in Europe, could impact its growth prospects. While the company's European business has shown strong growth, the region's sensitivity to energy price shocks and other geopolitical factors could introduce volatility and uncertainty. The company's ability to manage these risks and maintain its growth momentum in Europe will be important for its overall performance.
Houlihan Lokey's fourth quarter results were impacted by recent external market disruptions, including renewed geopolitical uncertainty from the conflict in the Middle East and market volatility affecting the software sector. These factors could continue to pose risks to the company's near-term growth prospects, particularly in its Corporate Finance and Financial Valuation and Advisory businesses. The company's reliance on macroeconomic conditions and the timing of revenues introduces volatility and uncertainty into its financial performance.
The company's Financial Restructuring business experienced a decrease in average transaction fees on closed deals in the fourth quarter, which could indicate potential pricing pressures or a shift in the mix of transactions. While the company attributes this to quarterly variations, sustained declines in average transaction fees could negatively impact the business's revenue and profitability. The company's ability to maintain elevated performance levels in Financial Restructuring will depend on its capacity to manage these pricing dynamics and secure larger transactions.
Houlihan Lokey's Corporate Finance business faces challenges in the technology sector, particularly in software, where there is uncertainty about the long-term impact of market dislocations. The company's ability to navigate these challenges and adapt to changing market conditions will be critical to its growth prospects. The company's reliance on the technology sector for a significant portion of its revenue exposes it to sector-specific risks and volatility.
The company's reliance on acquisitions for growth and platform strengthening introduces integration risks and potential cultural mismatches. While the company emphasizes cultural fit as a key criterion for acquisitions, successful integration and realization of synergies are not guaranteed. The company's ability to execute on its acquisition strategy and integrate new talent effectively will be crucial to its long-term success.
Houlihan Lokey's exposure to geopolitical risks, particularly in Europe, could impact its growth prospects. While the company's European business has shown strong growth, the region's sensitivity to energy price shocks and other geopolitical factors could introduce volatility and uncertainty. The company's ability to manage these risks and maintain its growth momentum in Europe will be important for its overall performance.