Texas Pacific Land Corporation (TPL) 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

-6.0%

$311.84

vs $331.74 price

Levered DCF

$329.75

After debt service

Piotroski score

6 / 9

Average

Altman Z-score

76.67

Safe zone

Rating

A-

Overall 4 / 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	41.15×	56.08×	29.8×	40.55×	35.86×	32.01×	19.01×	20.1×
P/B	13.57×	22.48×	11.59×	23.43×	14.85×	11.62×	11.83×	17.24×
P/S	24.81×	36.07×	19.14×	27.13×	21.47×	18.64×	12.35×	14.05×
EV / EBITDA	29.23×	41.54×	22.69×	30.47×	24.44×	23.14×	14.1×	15.56×
Gross margin	85.5%	89.9%	92.3%	95.1%	93.5%	89.2%	93.9%	95.4%
Operating margin	74.2%	76.4%	77.0%	84.3%	80.4%	71.8%	81.9%	86.9%
Net margin	60.3%	64.3%	64.2%	66.9%	59.9%	58.2%	65.0%	69.9%
Current ratio	4.4×	8.33×	13.68×	11.15×	7.8×	8.41×	14.99×	14.99×
Debt / equity	0.02×	0×	0×	0×	0×	0×	0.01×	0×
Interest coverage	858.2×	0×	0×	0×	0×	0×	0×	0×
Dividend yield	0.7%	1.4%	0.8%	1.4%	0.9%	3.6%	0.8%	0.8%
Payout ratio	30.7%	76.5%	24.6%	55.4%	31.6%	114.5%	14.6%	15.1%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	33.0%	40.1%	38.9%	57.8%	41.4%	36.3%	62.2%	85.7%
Return on invested capital	30.1%	35.6%	34.8%	53.8%	38.7%	32.7%	55.5%	76.6%
Return on assets	29.7%	36.4%	35.1%	50.9%	35.3%	30.8%	53.3%	73.6%
Free cash flow yield	2.5%	1.8%	3.3%	2.4%	2.6%	3.6%	5.1%	3.5%
Earnings yield	2.4%	1.8%	3.4%	2.5%	2.8%	3.1%	5.3%	5.0%
Enterprise value	$19.7B	$25.1B	$11.4B	$17.6B	$9.3B	$5.4B	$5.8B	$4.1B
Net debt / EBITDA	-0.17×	-0.61×	-1.45×	-0.88×	-1.13×	-1.2×	-0.74×	-0.45×
Cash conversion cycle (days)	-77	-73	-95	1,014	1,205	1,124	1,126	59