* Note: Prices are in Million (M) USD.
Description:
TPG Inc. is a global alternative asset manager. The company is headquartered in Fort Worth, Texas.
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Cash : $1,112 M
Debt : $603 M
EBITDA : $314 M
Since Cash is greater than Total Debt, 5 points assigned.
This criteria used industry in which company operates:
Sector: Financials
Industry: Asset management
Based on industry, 3 points assigned.
This criteria used Company's Price To Earning (P/E) Ratio to determines its fair value:
Forward PE Ratio: 21.79
Since Forward PE Ratio is between 20 - 25, 2 points assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Using last 7 overlapping fiscal years (max 20).Average Free Cash Flow: $818 M
Average Revenue: $2,530 M
Revenue Converted To Free Cash Flow (%): 32.3%
Since Free Cash Flow (FCF) to Revenue percentage is greater than 25, 5 points assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2024-12-31): $2,623 M
Revenue 4 Years Ago (2020-12-31): $2,247 M
Last 5 Years Average Revenue Growth: 3%
Since Revenue Growth is between 0 - 5, 1 point assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2024-12-31): $365 M
Share Count 5 Years Ago (2020-12-31): $69 M
Company is not buying back its own shares, 0 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Next Year Earnings Per Share (EPS): $3.05
Trailing 12-Month Earnings Per Share (EPS): $2.49
Average Earnings Per Share (EPS): $2.77
Dividend Per Share (DPS): $2
Payout Ratio: 69%
Dividend Yield: 3%
Since company Payout Ratio is greater than 50, 1 point assigned.
Since Dividend Yield is greater than 3, 3 points assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Using last 6 valid ROE years (max 20).Average ROE: 37.4%
Since Average ROE is greater than 20, 5 points assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $60
52-Week Low: $37
Threshold Price (15% Above 52-Week Low): $42
Since Current price is not within 15% threshold, 0 point assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $22,918 M
Since Market Cap is between 10B - 100B, 2 points assigned.
% Exposure to Total Portfolio
Based on the market cap, we recommend do not exceed 3% exposure of Total Portfolio.
Value-Trade has assigned 27 points to above TPG Inc (TPG) stock.
Heads up: One or more P/E inputs look exaggerated and may skew the blend.
• RCFC Based PE
35.86 (>2× median)
• ROE Based PE
39.90 (>2× median)
Further research is recommended; please use your own due diligence.In such cases, multiplying earnings by the long-run average P/E typically gives a closer, more reliable fair value.
Rule of thumb: Last 3 Years Avg P/E (23.26)
× EPS ($2.77) = $64.43.
Last 3 Years Avg PE 23.26, Fair Value PE 15, Industry Based PE 15, Growth Based PE 3, RCFC Based PE 35.86, ROE Based PE 39.9, Risk-Free Anchored PE (25% MoS) 17.08. Based on these 7 values, average assigned is 21.30. Value-Trades has assined P/E value 21.30. Since an average (Current Year EPS + Next Year EPS) earning per share is $2.77.
The fair value of TPG Inc (TPG) stock should be (21.30 x $2.77) = $59.
