We’ve recently updated our valuation analysis.

TriNet Group Valuation

Is TNET undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for TNET?

Other financial metrics that can be useful for relative valuation.

TNET key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue0.9x
Enterprise Value/EBITDA7.3x
PEG Ratio-0.9x

Price to Earnings Ratio vs Peers

How does TNET's PE Ratio compare to its peers?

The above table shows the PE ratio for TNET vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average20.5x
NSP Insperity
29.7x0.1%US$4.5b
ASGN ASGN
16.2x6.6%US$4.5b
MAN ManpowerGroup
10.2x-3.9%US$4.5b
ALIT Alight
25.8x58.7%US$4.6b
TNET TriNet Group
11.7x-12.4%US$4.4b

Price-To-Earnings vs Peers: TNET is good value based on its Price-To-Earnings Ratio (11.7x) compared to the peer average (20.5x).


Price to Earnings Ratio vs Industry

How does TNET's PE Ratio compare vs other companies in the US Professional Services Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a15.7%
n/an/an/a

Price-To-Earnings vs Industry: TNET is good value based on its Price-To-Earnings Ratio (11.7x) compared to the US Professional Services industry average (20.5x)


Price to Earnings Ratio vs Fair Ratio

What is TNET's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

TNET PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio11.7x
Fair PE Ratio15.1x

Price-To-Earnings vs Fair Ratio: TNET is good value based on its Price-To-Earnings Ratio (11.7x) compared to the estimated Fair Price-To-Earnings Ratio (15.1x).


Share Price vs Fair Value

What is the Fair Price of TNET when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: TNET ($70.78) is trading below our estimate of fair value ($85.56)

Significantly Below Fair Value: TNET is trading below fair value, but not by a significant amount.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst TNET forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$70.78
US$82.75
+16.9%
16.4%US$104.00US$70.00n/a4
Nov ’23US$64.85
US$82.75
+27.6%
16.4%US$104.00US$70.00n/a4
Oct ’23US$71.22
US$97.00
+36.2%
10.5%US$112.00US$83.00n/a5
Sep ’23US$82.56
US$100.50
+21.7%
8.3%US$112.00US$90.00n/a4
Aug ’23US$82.43
US$94.33
+14.4%
7.3%US$104.00US$89.00n/a3
Jul ’23US$77.80
US$99.67
+28.1%
9.2%US$112.00US$90.00n/a3
Jun ’23US$78.73
US$99.67
+26.6%
9.2%US$112.00US$90.00n/a3
May ’23US$88.70
US$99.67
+12.4%
9.2%US$112.00US$90.00n/a3
Apr ’23US$99.26
US$98.33
-0.9%
9.9%US$112.00US$90.00n/a3
Mar ’23US$86.35
US$98.33
+13.9%
9.9%US$112.00US$90.00n/a3
Feb ’23US$85.74
US$103.00
+20.1%
9.1%US$112.00US$90.00n/a3
Jan ’23US$95.26
US$101.60
+6.7%
12.6%US$116.00US$83.00n/a5
Dec ’22US$94.86
US$101.60
+7.1%
12.6%US$116.00US$83.00n/a5
Nov ’22US$101.53
US$96.80
-4.7%
11.3%US$112.00US$83.00US$64.855
Oct ’22US$96.54
US$93.40
-3.3%
9.7%US$107.00US$83.00US$71.225
Sep ’22US$92.68
US$93.40
+0.8%
9.7%US$107.00US$83.00US$82.565
Aug ’22US$82.98
US$91.20
+9.9%
9.3%US$107.00US$83.00US$82.435
Jul ’22US$72.73
US$90.75
+24.8%
5.4%US$98.00US$85.00US$77.804
Jun ’22US$74.99
US$90.75
+21.0%
5.4%US$98.00US$85.00US$78.734
May ’22US$78.71
US$90.75
+15.3%
5.4%US$98.00US$85.00US$88.704
Apr ’22US$79.40
US$88.50
+11.5%
7.9%US$98.00US$80.00US$99.264
Mar ’22US$83.73
US$88.50
+5.7%
7.9%US$98.00US$80.00US$86.354
Feb ’22US$76.36
US$79.25
+3.8%
9.7%US$85.00US$66.00US$85.744
Jan ’22US$80.60
US$79.25
-1.7%
9.7%US$85.00US$66.00US$95.264
Dec ’21US$77.97
US$79.25
+1.6%
9.7%US$85.00US$66.00US$94.864
Nov ’21US$68.92
US$79.25
+15.0%
9.7%US$85.00US$66.00US$101.534

Analyst Forecast: Target price is less than 20% higher than the current share price.


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