TRI Valuation

Thomson Reuters Corp

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172.940

+1.62(0.946%)1D

Overview
Forecast
Valuation
Earnings

TRI Relative Valuation

TRI'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, TRI is overvalued; if below, it's undervalued.

Historical Valuation

Thomson Reuters Corp (TRI) is now in the Undervalued zone, suggesting that its current forward PE ratio of 42.13 is considered Undervalued compared with the five-year average of 43.02. The fair price of Thomson Reuters Corp (TRI) is between 177.34 to 212.51 according to relative valuation methord. Compared to the current price of 172.94 USD , Thomson Reuters Corp is Undervalued By 2.48%.

Relative Value

Fair Zone

177.34-212.51

Current Price：172.94

2.48%

Undervalued

42.13

Trailing

Forward

25.66

EV/EBITDA

Thomson Reuters Corp. (TRI) has a current EV/EBITDA of 25.66. The 5-year average EV/EBITDA is 24.53. The thresholds are as follows: Strongly Undervalued below 19.16, Undervalued between 19.16 and 21.84, Fairly Valued between 27.21 and 21.84, Overvalued between 27.21 and 29.89, and Strongly Overvalued above 29.89. The current Forward EV/EBITDA of 25.66 falls within the Historic Trend Line -Fairly Valued range.

33.03

EV/EBIT

Thomson Reuters Corp. (TRI) has a current EV/EBIT of 33.03. The 5-year average EV/EBIT is 33.87. The thresholds are as follows: Strongly Undervalued below 25.63, Undervalued between 25.63 and 29.75, Fairly Valued between 37.99 and 29.75, Overvalued between 37.99 and 42.11, and Strongly Overvalued above 42.11. The current Forward EV/EBIT of 33.03 falls within the Historic Trend Line -Fairly Valued range.

9.91

Thomson Reuters Corp. (TRI) has a current PS of 9.91. The 5-year average PS is 8.60. The thresholds are as follows: Strongly Undervalued below 5.87, Undervalued between 5.87 and 7.23, Fairly Valued between 9.96 and 7.23, Overvalued between 9.96 and 11.33, and Strongly Overvalued above 11.33. The current Forward PS of 9.91 falls within the Historic Trend Line -Fairly Valued range.

28.29

P/OCF

Thomson Reuters Corp. (TRI) has a current P/OCF of 28.29. The 5-year average P/OCF is 25.94. The thresholds are as follows: Strongly Undervalued below 18.78, Undervalued between 18.78 and 22.36, Fairly Valued between 29.52 and 22.36, Overvalued between 29.52 and 33.10, and Strongly Overvalued above 33.10. The current Forward P/OCF of 28.29 falls within the Historic Trend Line -Fairly Valued range.

36.52

P/FCF

Thomson Reuters Corp. (TRI) has a current P/FCF of 36.52. The 5-year average P/FCF is 37.31. The thresholds are as follows: Strongly Undervalued below 26.24, Undervalued between 26.24 and 31.77, Fairly Valued between 42.84 and 31.77, Overvalued between 42.84 and 48.38, and Strongly Overvalued above 48.38. The current Forward P/FCF of 36.52 falls within the Historic Trend Line -Fairly Valued range.

Thomson Reuters Corp (TRI) has a current Price-to-Book (P/B) ratio of 6.17. Compared to its 3-year average P/B ratio of 5.77 , the current P/B ratio is approximately 6.94% higher. Relative to its 5-year average P/B ratio of 4.98, the current P/B ratio is about 24.10% higher. Thomson Reuters Corp (TRI) has a Forward Free Cash Flow (FCF) yield of approximately 2.44%. Compared to its 3-year average FCF yield of 2.47%, the current FCF yield is approximately -0.89% lower. Relative to its 5-year average FCF yield of 2.51% , the current FCF yield is about -2.63% lower.

6.17

P/B

Median3y

5.77

Median5y

4.98

2.44

FCF Yield

Median3y

2.47

Median5y

2.51

Competitors Valuation Multiple

The average P/S ratio for TRI's competitors is 46.20, providing a benchmark for relative valuation. Thomson Reuters Corp Corp (TRI) exhibits a P/S ratio of 9.91, which is -78.54% above the industry average. Given its robust revenue growth of 2.59%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

Spotify Technology SA

Performance Decomposition

Market capitalization of TRI increased by 1.03% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 29.59 to 48.57.

The secondary factor is the Revenue Growth, contributed 2.59%to the performance.

Overall, the performance of TRI in the past 1 year is driven by P/E Change. Which is more unsustainable.

2.59%

1.74B → 1.79B

Revenue Growth

-65.70%

48.51 → 16.64

Margin Expansion

64.14%

29.59 → 48.57

P/E Change

1.03%