TWFG, Inc. Common Stock (TWFG) 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

-100.6%

-$0.18

vs $28.60 price

Levered DCF

$35.59

After debt service

Piotroski score

7 / 9

Strong

Altman Z-score

4.9

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
P/E	54.28×	162.11×	71×	675.15×
P/B	5.2×	6.16×	9.33×	240.63×
P/S	1.85×	2.35×	1.73×	94.09×
EV / EBITDA	4.55×	6.08×	9.71×	513.76×
Gross margin	26.8%	24.0%	21.7%	20.7%
Operating margin	10.2%	14.4%	15.2%	16.0%
Net margin	3.4%	1.4%	0.0%	0.0%
Current ratio	68.07×	6.1×	2.15×	1.91×
Debt / equity	0.13×	0.14×	1.67×	0.23×
Interest coverage	83.18×	12.56×	25.32×	59.59×
Dividend yield	3.7%	2.0%	11.5%	0.1%
Payout ratio	199.2%	339.1%	0.0%	0.0%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022
Return on equity	9.6%	3.7%	0.0%	0.0%
Return on invested capital	6.0%	9.3%	30.3%	33.4%
Return on assets	2.1%	0.8%	0.0%	0.0%
Free cash flow yield	12.3%	8.2%	5.0%	0.1%
Earnings yield	1.8%	0.6%	0.0%	0.0%
Enterprise value	$287.3M	$269.5M	$302.2M	$13.9B
Net debt / EBITDA	-2.3×	-4.18×	0.4×	-0.33×
Cash conversion cycle (days)	56	9	16	160