TMX Group Limited (X.TO) 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

+44.8%

CA$86.56

vs CA$59.78 price

Levered DCF

CA$44.31

After debt service

Piotroski score

6 / 9

Average

Altman Z-score

0.33

Distress zone

Rating

C+

Overall 2 / 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	35.05×	25.45×	25.04×	13.9×	21.2×	25.69×	25.56×	13.74×
P/B	3.05×	2.68×	2.17×	1.89×	1.94×	1.99×	1.8×	1.16×
P/S	8.46×	8.41×	7.47×	6.78×	7.34×	8.29×	7.81×	4.8×
EV / EBITDA	7.6×	5.76×	4.1×	5.28×	12.2×	11.97×	15.98×	10.21×
Gross margin	65.5%	65.7%	65.3%	67.2%	67.6%	67.1%	67.8%	66.8%
Operating margin	44.9%	44.0%	45.2%	46.9%	50.1%	48.1%	47.4%	45.0%
Net margin	24.2%	33.0%	29.8%	48.7%	34.5%	32.3%	30.7%	34.8%
Current ratio	1×	1.01×	1×	1.01×	1×	1×	1×	0.99×
Debt / equity	0.46×	0.47×	0.28×	0.28×	0.3×	0.28×	0.31×	0.33×
Interest coverage	0.59×	0.4×	0.31×	0.67×	5.36×	2.13×	9.71×	8.37×
Dividend yield	1.6%	1.7%	2.2%	2.5%	2.3%	2.1%	2.2%	3.2%
Payout ratio	56.2%	43.2%	55.3%	34.1%	49.9%	54.9%	57.1%	43.6%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	8.7%	10.5%	8.7%	13.6%	9.1%	7.7%	7.1%	8.5%
Return on invested capital	7.1%	6.3%	6.3%	7.3%	6.1%	5.4%	5.2%	5.4%
Return on assets	0.8%	1.2%	0.6%	1.0%	0.5%	0.8%	0.8%	0.9%
Free cash flow yield	3.9%	4.5%	5.2%	5.2%	5.4%	4.8%	4.5%	7.3%
Earnings yield	2.9%	3.9%	4.0%	7.2%	4.7%	3.9%	3.9%	7.3%
Enterprise value	CA$16.1B	CA$14.1B	CA$9.8B	CA$8.3B	CA$8B	CA$8B	CA$7.3B	CA$4.9B
Net debt / EBITDA	0.74×	0.75×	0.36×	0.47×	1.27×	1.18×	2.09×	1.95×
Cash conversion cycle (days)	11	8	-8	248	-28	-19	-11	-3