TNL
Travel + Leisure Co.
$65.12
Stable Earnings Power
65%
P/Adj-EPS × Normalized Multiple
Moderate
·
Conviction
Undervalued
Trading 26.9% below fair value
You pay
$65.12
Bear
$71.26
Fair
$89.07
Bull
$106.89
Bear
$71.26
+9.4%
$4.75 × 15x P/E
Fair
$89.07
+36.8%
$4.75 × 19x P/E
Bull
$106.89
+64.1%
$4.75 × 23x P/E
Key Value Driver
Normalized P/E multiple (19x base case)
Implied Market Multiple
13.7x
Summary
Our base-case estimate uses a valuation based on adjusted earnings per share and a normalized price-to-earnings multiple. We then blend that result with the average analyst price target of $86.38 from 15 analysts, using a 25% weight on analyst consensus. That produces an estimated intrinsic value of $89.07 per share.
Warnings
The company's reported profits differ from official accounting profits by 38%. Check what costs are being left out of the adjusted number.
Key Risks
- Growth DCF inappropriate — terminal value assumptions dominate
- EV/EBITDA misleading for regulated businesses where capex is mandated
- Regulatory risk is a fat tail not visible in normal multiples