We've been asking ourselves recently if the market has placed a fair valuation on TPG. Let's dive into some of the fundamental values of this Large-Cap Finance company to determine if there might be an opportunity here for value-minded investors.
TPG's Valuation Is in Line With Its Sector Averages:
TPG Inc. operates as an alternative asset manager in the United States and internationally. The company belongs to the Finance sector, which has an average price to earnings (P/E) ratio of 15.92 and an average price to book (P/B) ratio of 1.78. In contrast, TPG has a trailing 12 month P/E ratio of -341.8 and a P/B ratio of 8.97.
TPG has moved 23.3% over the last year compared to 15.6% for the S&P 500 — a difference of 7.6%. TPG has a 52 week high of $72.98 and a 52 week low of $37.52.
Increasing Revenues but Narrowing Margins:
| 2020 | 2021 | 2022 | 2023 | 2024 | |
|---|---|---|---|---|---|
| Revenue (M) | $2,115 | $4,976 | $2,003 | $2,390 | $3,500 |
| Interest Income (M) | $16 | $14 | -$82 | $58 | $77 |
| Depreciation & Amort. (M) | $7 | $21 | $33 | $48 | $135 |
| Free Cash Flow (M) | $87 | $1,473 | $1,373 | $704 | $504 |
| CAPEX (M) | $8 | $2 | $2 | $17 | $28 |
