Travel + Leisure Co. (TNL) 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

-74.2%

$19.55

vs $75.91 price

Levered DCF

$26.11

After debt service

Piotroski score

8 / 9

Strong

Altman Z-score

2.18

Grey zone

Rating

Overall 2 / 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	20.09×	9.36×	7.35×	8.52×	15.27×	-15.26×	9.73×	5.28×
P/B	-4.71×	-4.01×	-3.17×	-3.33×	-5.97×	-3.96×	-8.98×	-6.18×
P/S	1.15×	0.92×	0.78×	0.85×	1.53×	1.79×	1.18×	0.9×
EV / EBITDA	11.21×	10.31×	9.86×	10.3×	13.13×	220.03×	10.55×	12.17×
Gross margin	27.2%	49.0%	48.6%	48.4%	50.1%	43.1%	52.0%	51.3%
Operating margin	17.8%	19.0%	19.2%	18.3%	19.7%	-4.9%	20.1%	13.3%
Net margin	5.7%	10.6%	10.6%	10.0%	9.8%	-11.7%	12.5%	17.1%
Current ratio	1.64×	4.09×	4.07×	4.18×	3.9×	4.81×	6.95×	3.17×
Debt / equity	-5×	-6.44×	-6.25×	-6.3×	-6.8×	-6.74×	-10.86×	-9.13×
Interest coverage	1.95×	2.94×	2.87×	3.35×	3.12×	-0.55×	5.01×	3.08×
Dividend yield	3.2%	4.0%	4.7%	4.4%	2.3%	3.6%	3.5%	5.5%
Payout ratio	64.8%	34.5%	34.3%	37.8%	35.4%	-54.5%	32.7%	28.9%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	-23.4%	-46.7%	-43.1%	-39.1%	-38.5%	25.9%	-95.7%	-117.1%
Return on invested capital	16.3%	9.7%	10.4%	8.5%	8.3%	-1.5%	8.7%	6.4%
Return on assets	3.4%	6.1%	5.9%	5.3%	4.7%	-3.3%	6.8%	9.4%
Free cash flow yield	11.3%	10.8%	9.5%	12.8%	10.7%	7.9%	7.2%	9.7%
Earnings yield	5.0%	11.6%	13.6%	11.8%	6.4%	-6.6%	10.6%	19.0%
Enterprise value	$9.3B	$9B	$8.4B	$8.2B	$9.9B	$9.2B	$10.2B	$8.6B
Net debt / EBITDA	5.62×	6.27×	6.43×	6.5×	6.76×	128.07×	5.61×	7.13×
Cash conversion cycle (days)	148	494	483	494	565	401	517	521