TWFG Relative Valuation
TWFG'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, TWFG is overvalued; if below, it's undervalued.
Historical Valuation
TWFG Inc (TWFG) is now in the Undervalued zone, suggesting that its current forward PE ratio of 33.78 is considered Undervalued compared with the five-year average of 44.55. The fair price of TWFG Inc (TWFG) is between 29.43 to 39.40 according to relative valuation methord. Compared to the current price of 28.03 USD , TWFG Inc is Undervalued By 4.77%.
Relative Value
Fair Zone
29.43-39.40
Current Price：28.03
4.77%
Undervalued
34.09
PE
1Y
3Y
5Y
Trailing
Forward
8.42
EV/EBITDA
TWFG Inc. (TWFG) has a current EV/EBITDA of 8.42. The 5-year average EV/EBITDA is 9.67. The thresholds are as follows: Strongly Undervalued below 7.30, Undervalued between 7.30 and 8.49, Fairly Valued between 10.86 and 8.49, Overvalued between 10.86 and 12.05, and Strongly Overvalued above 12.05. The current Forward EV/EBITDA of 8.42 falls within the Undervalued range.
15.24
EV/EBIT
TWFG Inc. (TWFG) has a current EV/EBIT of 15.24. The 5-year average EV/EBIT is 15.52. The thresholds are as follows: Strongly Undervalued below 11.83, Undervalued between 11.83 and 13.67, Fairly Valued between 17.37 and 13.67, Overvalued between 17.37 and 19.21, and Strongly Overvalued above 19.21. The current Forward EV/EBIT of 15.24 falls within the Historic Trend Line -Fairly Valued range.
1.55
PS
TWFG Inc. (TWFG) has a current PS of 1.55. The 5-year average PS is 1.83. The thresholds are as follows: Strongly Undervalued below 1.36, Undervalued between 1.36 and 1.60, Fairly Valued between 2.07 and 1.60, Overvalued between 2.07 and 2.31, and Strongly Overvalued above 2.31. The current Forward PS of 1.55 falls within the Undervalued range.
0.00
P/OCF
TWFG Inc. (TWFG) has a current P/OCF of 0.00. The 5-year average P/OCF is 6.49. The thresholds are as follows: Strongly Undervalued below -5.12, Undervalued between -5.12 and 0.69, Fairly Valued between 12.30 and 0.69, Overvalued between 12.30 and 18.10, and Strongly Overvalued above 18.10. The current Forward P/OCF of 0.00 falls within the Undervalued range.
9.88
P/FCF
TWFG Inc. (TWFG) has a current P/FCF of 9.88. The 5-year average P/FCF is 11.46. The thresholds are as follows: Strongly Undervalued below 4.10, Undervalued between 4.10 and 7.78, Fairly Valued between 15.15 and 7.78, Overvalued between 15.15 and 18.83, and Strongly Overvalued above 18.83. The current Forward P/FCF of 9.88 falls within the Historic Trend Line -Fairly Valued range.
TWFG Inc (TWFG) has a current Price-to-Book (P/B) ratio of 5.35. Compared to its 3-year average P/B ratio of 4.65 , the current P/B ratio is approximately 15.00% higher. Relative to its 5-year average P/B ratio of 4.65, the current P/B ratio is about 15.00% higher. TWFG Inc (TWFG) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 8.69%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 8.69% , the current FCF yield is about -100.00% lower.
5.40
P/B
Median3y
4.65
Median5y
4.65
11.47
FCF Yield
Median3y
8.69
Median5y
8.69
Competitors Valuation Multiple
The average P/S ratio for TWFG's competitors is , providing a benchmark for relative valuation. TWFG Inc Corp (TWFG) exhibits a P/S ratio of , which is NaN% above the industry average. Given its robust revenue growth of 17.36%, this premium appears unsustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of TWFG decreased by 7.34% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 12.62 to 15.00.
The secondary factor is the Revenue Growth, contributed 17.36%to the performance.
Overall, the performance of TWFG in the past 1 year is driven by Margin Expansion. Which is more sustainable.
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