TriNet Group, Inc. (TNET) 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

+27.1%

$85.27

vs $67.11 price

Levered DCF

$79.74

After debt service

Piotroski score

8 / 9

Strong

Altman Z-score

1.92

Grey zone

Rating

B+

Overall 3 / 5

Ratios by fiscal year

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

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	18.54×	26.23×	18.07×	11.98×	18.61×	19.85×	18.68×	15.37×
P/B	52.56×	65.78×	86.91×	5.51×	7.14×	8.9×	8.34×	7.87×
P/S	0.57×	0.9×	1.38×	0.87×	1.38×	1.34×	1.03×	0.84×
EV / EBITDA	10.1×	13.91×	11.52×	7.33×	11.21×	11.5×	8.45×	10.56×
Gross margin	17.7%	18.8%	22.4%	22.9%	20.6%	19.7%	17.7%	19.0%
Operating margin	5.4%	5.7%	9.5%	10.2%	10.0%	9.1%	7.0%	7.2%
Net margin	3.1%	3.4%	7.6%	7.3%	7.4%	6.7%	5.5%	5.5%
Current ratio	1.09×	1.07×	1.05×	1.17×	1.4×	1.16×	1.14×	1.16×
Debt / equity	17.44×	14.81×	14.58×	0.71×	0.62×	0.71×	0.96×	1.1×
Interest coverage	4.88×	4.65×	11.73×	12.79×	22.75×	17.52×	12.76×	11.41×
Dividend yield	1.8%	0.8%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%
Payout ratio	33.5%	21.4%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	287.0%	250.7%	480.8%	45.8%	38.4%	44.8%	44.6%	51.2%
Return on invested capital	16.7%	18.0%	25.9%	25.0%	22.1%	23.2%	18.4%	19.4%
Return on assets	4.1%	4.2%	10.2%	10.3%	10.2%	8.9%	7.7%	7.9%
Free cash flow yield	10.8%	4.4%	6.9%	11.8%	2.8%	9.4%	10.8%	-5.0%
Earnings yield	5.5%	3.8%	5.5%	8.3%	5.4%	5.0%	5.3%	6.5%
Enterprise value	$3.5B	$5.2B	$7.6B	$4.5B	$6.2B	$5.5B	$3B	$3.1B
Net debt / EBITDA	1.89×	1.77×	1.28×	0.32×	-0.12×	0.27×	-2.62×	0.62×
Cash conversion cycle (days)	13	20	26	20	19	182	24	154