Tractor Supply Company (TSCO) 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

-8.2%

$31.87

vs $34.71 price

Levered DCF

$35.17

After debt service

Piotroski score

6 / 9

Average

Altman Z-score

3.83

Safe 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	24.83×	26.61×	21.19×	23×	27.46×	21.83×	19.88×	19.23×
P/B	10.55×	12.9×	10.91×	12.26×	13.68×	8.5×	7.14×	6.55×
P/S	1.75×	1.97×	1.61×	1.76×	2.15×	1.54×	1.34×	1.29×
EV / EBITDA	16.82×	18×	15.01×	16.37×	19.3×	15.29×	14.71×	12.05×
Gross margin	33.2%	36.3%	35.9%	35.0%	35.2%	35.4%	34.4%	34.2%
Operating margin	9.5%	9.9%	10.2%	10.1%	10.3%	9.4%	8.9%	8.9%
Net margin	7.1%	7.4%	7.6%	7.7%	7.8%	7.1%	6.7%	6.7%
Current ratio	1.34×	1.43×	1.5×	1.33×	1.57×	1.87×	1.43×	1.91×
Debt / equity	2.3×	2.39×	2.34×	2.09×	1.96×	1.84×	1.73×	0.28×
Interest coverage	21.22×	26.88×	31.8×	46.84×	49.11×	34.64×	37.46×	38.24×
Dividend yield	1.8%	1.6%	1.9%	1.6%	0.9%	1.1%	1.5%	1.4%
Payout ratio	44.5%	42.9%	40.6%	37.6%	24.0%	23.3%	28.9%	27.6%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	42.5%	48.5%	51.5%	53.3%	49.8%	38.9%	35.9%	34.1%
Return on invested capital	13.1%	14.5%	15.5%	17.2%	16.9%	13.8%	13.3%	25.1%
Return on assets	10.0%	11.2%	12.1%	12.8%	12.8%	10.6%	10.6%	17.3%
Free cash flow yield	2.7%	2.2%	2.5%	2.3%	1.9%	6.7%	5.3%	4.1%
Earnings yield	4.0%	3.8%	4.7%	4.3%	3.6%	4.6%	5.0%	5.2%
Enterprise value	$33B	$34.5B	$28.1B	$29.1B	$30.4B	$18.6B	$13.8B	$10.6B
Net debt / EBITDA	2.93×	2.7×	2.48×	2.29×	1.93×	1.81×	2.79×	0.4×
Cash conversion cycle (days)	60	62	57	52	46	43	64	68