Tradeweb Markets Inc. (TW) 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

+7.0%

$133.69

vs $124.97 price

Levered DCF

$179.53

After debt service

Piotroski score

9 / 9

Strong

Altman Z-score

16.04

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	28.23×	55.47×	52.53×	43.29×	88.62×	67.88×	39.62×	27.76×
P/B	3.52×	4.81×	3.56×	2.69×	4.34×	2.62×	2.03×	0.97×
P/S	11.17×	16.16×	14.32×	11.23×	18.74×	12.62×	8.85×	6.72×
EV / EBITDA	14.8×	27.16×	25.69×	19.61×	35.41×	24.52×	17.75×	15.77×
Gross margin	67.3%	65.7%	65.6%	63.6%	62.2%	60.8%	57.5%	56.0%
Operating margin	41.2%	39.3%	37.8%	34.7%	33.3%	29.5%	24.5%	26.2%
Net margin	39.6%	29.1%	27.3%	26.0%	21.1%	18.6%	10.8%	24.3%
Current ratio	4.94×	4.04×	3.69×	6.01×	5.03×	4.25×	2.73×	1.75×
Debt / equity	0.04×	0.01×	0.01×	0.01×	0.01×	0.01×	0.01×	0×
Interest coverage	435.41×	158.45×	246.83×	228.57×	0×	0×	0×	0×
Dividend yield	0.4%	0.3%	0.4%	0.5%	0.3%	0.5%	2.3%	4.0%
Payout ratio	12.6%	17.0%	20.8%	21.3%	28.5%	34.9%	186.2%	110.0%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	12.5%	8.6%	6.8%	6.2%	4.9%	3.9%	2.5%	3.5%
Return on invested capital	9.3%	7.5%	6.0%	5.6%	4.6%	3.8%	3.0%	3.4%
Return on assets	9.9%	6.9%	5.2%	4.9%	3.8%	2.9%	1.6%	3.2%
Free cash flow yield	4.9%	3.1%	3.6%	4.3%	2.6%	3.6%	3.9%	5.3%
Earnings yield	3.5%	1.8%	1.9%	2.3%	1.1%	1.5%	1.2%	3.6%
Enterprise value	$21.1B	$26.6B	$17.5B	$12.1B	$19.2B	$10.5B	$6.4B	$4B
Net debt / EBITDA	-1.27×	-1.33×	-2.43×	-1.99×	-1.75×	-1.77×	-1.19×	-1.62×
Cash conversion cycle (days)	-56	-39	-175	-6	9	-2	-12	-124