Thomson Reuters Corporation

NYSE:TRI Stock Report

Market Cap: US$72.8b

Thomson Reuters Valuation

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

Valuation Score

1/6

Valuation Score 1/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

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

Below Fair Value: TRI ($161.2) is trading above our estimate of fair value ($117.39)

Significantly Below Fair Value: TRI is trading above our estimate of fair value.

Key Valuation Metric

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

Key metric: As TRI is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for TRI. This is calculated by dividing TRI's market cap by their current earnings.
What is TRI's PE Ratio?
PE Ratio32.5x
EarningsUS$2.23b
Market CapUS$72.80b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for TRI vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average51.2x
VRSK Verisk Analytics
44.1x7.9%US$40.6b
EFX Equifax
55.9x26.2%US$31.3b
LDOS Leidos Holdings
18.4x5.1%US$22.0b
TRU TransUnion
86.2x33.5%US$19.2b
TRI Thomson Reuters
32.5x-1.2%US$101.8b

Price-To-Earnings vs Peers: TRI is good value based on its Price-To-Earnings Ratio (32.5x) compared to the peer average (51.2x).

Price to Earnings Ratio vs Industry

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

10 CompaniesPrice / EarningsEstimated GrowthMarket Cap
CNDT Conduent
1.4x-104.3%US$582.00m
CIH China Index Holdings
3.5xn/aUS$87.15m
ALJJ ALJ Regional Holdings
0.7xn/aUS$70.26m
STCN Steel Connect
3.1xn/aUS$62.67m
TRI 32.5xIndustry Avg. 25.5xNo. of Companies13PE01632486480+
10 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: TRI is expensive based on its Price-To-Earnings Ratio (32.5x) compared to the US Professional Services industry average (24.7x).

Price to Earnings Ratio vs Fair Ratio

What is TRI'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.

TRI PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio32.5x
Fair PE Ratio29.3x

Price-To-Earnings vs Fair Ratio: TRI is expensive based on its Price-To-Earnings Ratio (32.5x) compared to the estimated Fair Price-To-Earnings Ratio (29.3x).

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 TRI forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$161.20
US$172.52
+7.0%
11.6%US$200.00US$140.75n/a7
Nov ’25US$164.78
US$168.63
+2.3%
10.4%US$191.35US$140.10n/a7
Oct ’25US$169.90
US$168.28
-1.0%
10.9%US$191.85US$137.19n/a7
Sep ’25US$171.18
US$165.25
-3.5%
8.8%US$184.89US$137.19n/a8
Aug ’25US$158.87
US$166.08
+4.5%
8.8%US$184.89US$137.19n/a8
Jul ’25US$168.07
US$166.23
-1.1%
9.3%US$188.16US$137.19n/a8
Jun ’25US$172.11
US$165.80
-3.7%
9.2%US$188.16US$137.19n/a8
May ’25US$151.48
US$160.65
+6.1%
10.3%US$180.39US$127.85n/a8
Apr ’25US$155.30
US$160.29
+3.2%
10.4%US$180.39US$127.85n/a8
Mar ’25US$159.29
US$152.42
-4.3%
10.6%US$180.39US$120.32n/a8
Feb ’25US$151.64
US$140.17
-7.6%
11.1%US$163.06US$112.41n/a9
Jan ’25US$146.22
US$135.80
-7.1%
10.3%US$160.62US$112.41n/a9
Dec ’24US$141.00
US$134.49
-4.6%
9.4%US$160.62US$112.41n/a9
Nov ’24US$122.24
US$135.47
+10.8%
6.6%US$142.49US$112.41US$164.789
Oct ’24US$122.32
US$138.43
+13.2%
10.2%US$165.31US$109.52US$169.908
Sep ’24US$128.89
US$139.56
+8.3%
10.4%US$166.39US$109.52US$171.188
Aug ’24US$135.14
US$136.92
+1.3%
10.5%US$161.61US$109.52US$158.878
Jul ’24US$134.94
US$136.91
+1.5%
10.5%US$161.61US$109.52US$168.078
Jun ’24US$128.58
US$137.76
+7.1%
10.3%US$164.43US$113.36US$172.117
May ’24US$137.11
US$131.11
-4.4%
7.2%US$144.16US$113.36US$151.487
Apr ’24US$134.99
US$131.30
-2.7%
7.3%US$144.42US$113.36US$155.307
Mar ’24US$125.41
US$131.30
+4.7%
7.3%US$144.42US$113.36US$159.297
Feb ’24US$124.88
US$126.55
+1.3%
6.7%US$143.69US$113.70US$151.647
Jan ’24US$118.34
US$122.26
+3.3%
8.4%US$137.38US$106.34US$146.227
Dec ’23US$121.63
US$122.37
+0.6%
8.6%US$139.62US$106.34US$141.007
Nov ’23US$106.69
US$124.66
+16.8%
8.1%US$142.89US$106.34US$122.247

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

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