TFS Financial Corporation (TFSL) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-134.6%

-$5.72

vs $16.52 price

Levered DCF

-$14.28

After debt service

Piotroski score

6 / 9

Average

Altman Z-score

-0.27

Distress zone

Rating

C-

Overall 1 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
P/E	45×	41.19×	45.93×	43.78×	50×	65.72×	48.97×	62.14×
P/B	2.25×	1.94×	1.92×	1.7×	1.96×	3.04×	2.42×	2.92×
P/S	5.38×	4.64×	4.71×	5.18×	8.32×	11.86×	7.97×	9.87×
EV / EBITDA	15.9×	59.12×	66.49×	72.8×	67.68×	59.69×	53.52×	68.9×
Gross margin	42.2%	40.3%	40.2%	48.4%	67.0%	66.6%	57.5%	58.9%
Operating margin	15.4%	14.5%	13.2%	14.7%	21.3%	22.5%	19.7%	20.3%
Net margin	12.0%	11.5%	10.5%	11.9%	17.2%	18.2%	16.4%	16.0%
Current ratio	0.1×	0.05×	0.1×	0.11×	0.1×	0.1×	0.11×	0.1×
Debt / equity	2.86×	2.59×	2.59×	2.75×	2.62×	1.81×	2.13×	2.32×
Interest coverage	0.26×	0.24×	0.22×	0.28×	0.65×	0.63×	0.47×	0.47×
Dividend yield	7.2%	1.6%	1.6%	1.8%	1.6%	1.1%	1.4%	1.0%
Payout ratio	322.6%	65.5%	74.1%	77.5%	78.2%	69.9%	66.6%	62.9%

Key metrics by fiscal year

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
Return on equity	5.0%	4.8%	4.3%	3.9%	4.0%	4.7%	5.0%	4.7%
Return on invested capital	1.3%	1.3%	1.2%	1.0%	1.1%	1.6%	1.6%	1.4%
Return on assets	0.6%	0.5%	0.5%	0.4%	0.5%	0.6%	0.6%	0.6%
Free cash flow yield	0.0%	1.9%	2.4%	2.6%	1.0%	1.6%	2.9%	2.0%
Earnings yield	2.2%	2.5%	2.2%	2.3%	2.1%	1.5%	2.1%	1.6%
Enterprise value	$9.8B	$8.1B	$7.9B	$8.1B	$8.1B	$7.9B	$7.1B	$8.6B
Net debt / EBITDA	8.57×	32.46×	36.51×	43.39×	37.4×	19.94×	23.07×	29.25×
Cash conversion cycle (days)	29	17	10	19	28	21	21	23