TPL PE Ratio & Valuation,Is TPL Overvalued

TPL Relative Valuation

TPL's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, TPL is overvalued; if below, it's undervalued.

Historical Valuation

Texas Pacific Land Corp (TPL) is now in the Fair zone, suggesting that its current forward PE ratio of 38.04 is considered Fairly compared with the five-year average of 34.30. The fair price of Texas Pacific Land Corp (TPL) is between 156.72 to 316.06 according to relative valuation methord.

Relative Value

Fair Zone

156.72-316.06

Current Price：281.39

Fair

38.04

26.39

EV/EBITDA

Texas Pacific Land Corp. (TPL) has a current EV/EBITDA of 26.39. The 5-year average EV/EBITDA is 25.49. The thresholds are as follows: Strongly Undervalued below 6.19, Undervalued between 6.19 and 15.84, Fairly Valued between 35.14 and 15.84, Overvalued between 35.14 and 44.78, and Strongly Overvalued above 44.78. The current Forward EV/EBITDA of 26.39 falls within the Historic Trend Line -Fairly Valued range.

29.76

EV/EBIT

Texas Pacific Land Corp. (TPL) has a current EV/EBIT of 29.76. The 5-year average EV/EBIT is 26.96. The thresholds are as follows: Strongly Undervalued below 7.24, Undervalued between 7.24 and 17.10, Fairly Valued between 36.82 and 17.10, Overvalued between 36.82 and 46.68, and Strongly Overvalued above 46.68. The current Forward EV/EBIT of 29.76 falls within the Historic Trend Line -Fairly Valued range.

23.00

Texas Pacific Land Corp. (TPL) has a current PS of 23.00. The 5-year average PS is 22.55. The thresholds are as follows: Strongly Undervalued below 6.43, Undervalued between 6.43 and 14.49, Fairly Valued between 30.61 and 14.49, Overvalued between 30.61 and 38.67, and Strongly Overvalued above 38.67. The current Forward PS of 23.00 falls within the Historic Trend Line -Fairly Valued range.

32.87

P/OCF

Texas Pacific Land Corp. (TPL) has a current P/OCF of 32.87. The 5-year average P/OCF is 31.82. The thresholds are as follows: Strongly Undervalued below 8.81, Undervalued between 8.81 and 20.31, Fairly Valued between 43.33 and 20.31, Overvalued between 43.33 and 54.84, and Strongly Overvalued above 54.84. The current Forward P/OCF of 32.87 falls within the Historic Trend Line -Fairly Valued range.

35.29

P/FCF

Texas Pacific Land Corp. (TPL) has a current P/FCF of 35.29. The 5-year average P/FCF is 35.84. The thresholds are as follows: Strongly Undervalued below 11.16, Undervalued between 11.16 and 23.50, Fairly Valued between 48.18 and 23.50, Overvalued between 48.18 and 60.52, and Strongly Overvalued above 60.52. The current Forward P/FCF of 35.29 falls within the Historic Trend Line -Fairly Valued range.

Texas Pacific Land Corp (TPL) has a current Price-to-Book (P/B) ratio of 15.02. Compared to its 3-year average P/B ratio of 17.49 , the current P/B ratio is approximately -14.16% higher. Relative to its 5-year average P/B ratio of 17.67, the current P/B ratio is about -15.00% higher. Texas Pacific Land Corp (TPL) has a Forward Free Cash Flow (FCF) yield of approximately 2.51%. Compared to its 3-year average FCF yield of 2.66%, the current FCF yield is approximately -5.86% lower. Relative to its 5-year average FCF yield of 2.50% , the current FCF yield is about 0.25% lower.

15.02

P/B

Median3y

17.49

Median5y

17.67

2.51

FCF Yield

Median3y

2.66

Median5y

2.50

Competitors Valuation Multiple

The average P/S ratio for TPL's competitors is 8.35, providing a benchmark for relative valuation. Texas Pacific Land Corp Corp (TPL) exhibits a P/S ratio of 23.00, which is 175.58% above the industry average. Given its robust revenue growth of 17.01%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

Revenue Growth

Market Cap

Performance Decomposition

Market capitalization of TPL decreased by 34.92% over the past 1 year. The primary factor behind the change was an increase in Revenue Growth from 173.56M to 203.09M.

The secondary factor is the Margin Expansion, contributed -2.80%to the performance.

Overall, the performance of TPL in the past 1 year is driven by Revenue Growth. Which is more sustainable.

17.01%

173.56M → 203.09M

Revenue Growth

-2.80%

61.42 → 59.70

Margin Expansion

-49.13%

84.89 → 43.18

P/E Change

-34.92%

432.39 → 281.39

Mkt Cap Growth

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Frequently Asked Questions

Is Texas Pacific Land Corp (TPL) currently overvalued or undervalued?

What is Texas Pacific Land Corp (TPL) fair value?

TPL's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average , adjusted by weights. The fair price of Texas Pacific Land Corp (TPL) is between 156.72 to 316.06 according to relative valuation methord.

How does TPL's valuation metrics compare to the industry average?

What is the current P/B ratio for Texas Pacific Land Corp (TPL) as of Jan 08 2026?

As of Jan 08 2026, Texas Pacific Land Corp (TPL) has a P/B ratio of 15.02. This indicates that the market values TPL at 15.02 times its book value.

What is the current FCF Yield for Texas Pacific Land Corp (TPL) as of Jan 08 2026?

As of Jan 08 2026, Texas Pacific Land Corp (TPL) has a FCF Yield of 2.51%. This means that for every dollar of Texas Pacific Land Corp’s market capitalization, the company generates 2.51 cents in free cash flow.

What is the current Forward P/E ratio for Texas Pacific Land Corp (TPL) as of Jan 08 2026?

As of Jan 08 2026, Texas Pacific Land Corp (TPL) has a Forward P/E ratio of 38.04. This means the market is willing to pay $38.04 for every dollar of Texas Pacific Land Corp’s expected earnings over the next 12 months.

What is the current Forward P/S ratio for Texas Pacific Land Corp (TPL) as of Jan 08 2026?

As of Jan 08 2026, Texas Pacific Land Corp (TPL) has a Forward P/S ratio of 23.00. This means the market is valuing TPL at $23.00 for every dollar of expected revenue over the next 12 months.

TPL Valuation