Thomson Reuters Corporation (TRI) 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

+33.9%

$164.17

vs $122.58 price

Levered DCF

$123.73

After debt service

Piotroski score

7 / 9

Strong

Altman Z-score

5.84

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	39.42×	33.33×	25.14×	45.38×	11.04×	35.97×	23.66×	463×
P/B	5.05×	6.12×	6.22×	4.9×	4.5×	4.3×	3.95×	3.56×
P/S	8.05×	10.12×	10.13×	8.78×	9.8×	7.17×	6.4×	5.96×
EV / EBITDA	20.28×	24.47×	24.13×	20.66×	32.38×	16.41×	21.42×	22.97×
Gross margin	75.8%	75.3%	77.0%	76.1%	75.1%	80.6%	76.1%	81.1%
Operating margin	26.6%	29.1%	34.3%	27.7%	19.6%	32.2%	20.3%	14.2%
Net margin	20.1%	30.4%	39.7%	20.2%	89.6%	18.8%	26.5%	71.5%
Current ratio	0.64×	1.02×	0.9×	0.57×	0.95×	1.5×	0.95×	1.68×
Debt / equity	0.18×	0.26×	0.32×	0.42×	0.29×	0.41×	0.37×	0.35×
Interest coverage	10.87×	12.52×	10.8×	9.89×	6.67×	10.18×	6.44×	3.09×
Dividend yield	1.8%	1.2%	1.3%	1.4%	1.2%	1.8%	1.9%	2.6%
Payout ratio	70.4%	40.9%	33.7%	60.1%	13.5%	68.7%	45.9%	21.8%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	12.6%	18.4%	24.4%	11.3%	41.1%	11.2%	16.4%	42.7%
Return on invested capital	10.1%	13.2%	12.7%	8.3%	4.9%	11.9%	8.1%	3.0%
Return on assets	8.4%	12.0%	14.4%	6.2%	25.7%	6.3%	9.0%	23.1%
Free cash flow yield	3.4%	2.4%	2.7%	2.2%	3.6%	3.0%	0.5%	4.3%
Earnings yield	2.5%	3.0%	3.9%	2.3%	9.1%	2.6%	4.1%	12.0%
Enterprise value	$61.8B	$74.7B	$71.2B	$62.2B	$65.6B	$45.2B	$40.6B	$33.3B
Net debt / EBITDA	0.53×	0.4×	0.79×	1.33×	1.65×	0.85×	1.47×	0.37×
Cash conversion cycle (days)	-161	26	26	15	19	14	14	-11