Latest Ratios: P/E Ratio 18.3x · EV/EBITDA 10.1x · ROE N/A. (2005–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $3.9B | $4.7B | $3.6B | $2.9B | $3.1B | $4.8B | $3.9B | $4.8B | $3.6B | $5.4B | $3.8B |
| Enterprise Value | $8.5B | $9.4B | $9.1B | $8.4B | $8.3B | $9.9B | $9.2B | $10.2B | $8.6B | $11.7B | $9.2B |
| P/E Ratio → | 18.34 | 20.50 | 9.43 | 7.40 | 8.61 | 15.27 | — | 9.77 | 5.29 | 6.22 | 6.23 |
| P/S Ratio | 0.96 | 1.17 | 0.92 | 0.78 | 0.86 | 1.53 | 1.79 | 1.18 | 0.90 | 1.07 | 0.68 |
| P/B Ratio | — | — | — | — | — | — | — | — | — | 6.16 | 5.33 |
| P/FCF | 7.39 | 9.02 | 9.31 | 10.62 | 7.86 | 9.36 | 12.66 | 13.88 | 10.37 | 6.52 | 4.89 |
| P/OCF | 6.04 | 7.37 | 7.69 | 8.38 | 6.93 | 8.42 | 10.33 | 10.57 | 8.04 | 5.51 | 3.93 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 2.33 | 2.35 | 2.24 | 2.32 | 3.15 | 4.28 | 2.52 | 2.18 | 2.31 | 1.63 |
| EV / EBITDA | 10.13 | 11.15 | 10.70 | 10.08 | 10.71 | 13.29 | 440.07 | 10.91 | 12.97 | 20.38 | 11.66 |
| EV / EBIT | 11.88 | 13.31 | 11.90 | 11.39 | 12.14 | 15.73 | — | 12.09 | 15.15 | 24.77 | 13.56 |
| EV / FCF | — | 17.92 | 23.68 | 30.37 | 21.20 | 19.30 | 30.30 | 29.58 | 25.00 | 14.05 | 11.71 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 27.2% | 27.2% | 49.0% | 48.6% | 48.4% | 50.1% | 43.1% | 52.0% | 51.3% | 38.3% | 33.3% |
| Operating Margin | 17.8% | 17.8% | 19.0% | 19.2% | 18.3% | 19.7% | -4.9% | 20.1% | 13.3% | 8.6% | 11.8% |
| Net Profit Margin | 5.7% | 5.7% | 10.6% | 10.6% | 10.0% | 9.8% | -11.7% | 12.5% | 17.1% | 16.8% | 10.9% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | — | — | — | — | — | — | — | — | 428.0% | 106.7% | 73.1% |
| ROA | 3.4% | 3.4% | 6.1% | 5.9% | 5.4% | 4.3% | -3.4% | 6.9% | 7.7% | 8.4% | 6.3% |
| ROIC | 13.0% | 13.0% | 12.0% | 12.2% | 11.4% | 10.7% | -1.7% | 13.1% | 6.8% | 5.0% | 8.2% |
| ROCE | 12.6% | 12.6% | 13.2% | 12.9% | 11.8% | 10.4% | -1.6% | 13.3% | 8.0% | 5.7% | 8.5% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | — | — | — | — | — | — | — | — | — | 7.17 | 7.58 |
| Debt / EBITDA | 5.84 | 5.84 | 6.69 | 6.89 | 7.45 | 7.34 | 313.10 | 6.17 | 7.92 | 11.00 | 6.93 |
| Net Debt / Equity | — | — | — | — | — | — | — | — | — | 7.11 | 7.42 |
| Net Debt / EBITDA | 5.54 | 5.54 | 6.49 | 6.55 | 6.74 | 6.85 | 256.14 | 5.79 | 7.59 | 10.92 | 6.79 |
| Debt / FCF | — | 8.90 | 14.37 | 19.75 | 13.34 | 9.94 | 17.64 | 15.70 | 14.64 | 7.53 | 6.81 |
| Interest Coverage | 1.92 | 1.92 | 3.06 | 2.93 | 3.49 | 3.17 | -0.44 | 5.20 | 3.33 | 3.03 | 5.08 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.64 | 1.64 | 4.09 | 4.07 | 4.18 | 3.90 | 4.81 | 6.95 | 3.17 | 2.88 | 0.86 |
| Quick Ratio | 0.44 | 0.44 | 3.04 | 3.10 | 3.13 | 2.86 | 3.65 | 5.39 | 2.43 | 2.76 | 0.70 |
| Cash Ratio | 0.27 | 0.27 | 0.16 | 0.25 | 0.49 | 0.34 | 1.04 | 0.52 | 0.15 | 0.02 | 0.06 |
| Asset Turnover | — | 0.59 | 0.57 | 0.56 | 0.53 | 0.48 | 0.28 | 0.54 | 0.55 | 0.49 | 0.57 |
| Inventory Turnover | 2.60 | 2.60 | 1.61 | 1.70 | 1.54 | 1.29 | 0.91 | 1.62 | 1.56 | 5.47 | 5.80 |
| Days Sales Outstanding | — | 14.98 | 279.04 | 281.59 | 270.14 | 295.59 | 19.43 | 305.22 | 299.63 | 228.66 | 44.07 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 3.5% | 3.2% | 4.0% | 4.6% | 4.4% | 2.3% | 3.6% | 3.5% | 5.5% | 4.5% | 5.8% |
| Payout Ratio | 64.8% | 64.8% | 34.5% | 34.3% | 37.8% | 35.4% | — | 32.7% | 28.9% | 28.3% | 36.5% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 5.5% | 4.9% | 10.6% | 13.5% | 11.6% | 6.5% | — | 10.2% | 18.9% | 16.1% | 16.0% |
| FCF Yield | 13.5% | 11.1% | 10.7% | 9.4% | 12.7% | 10.7% | 7.9% | 7.2% | 9.6% | 15.3% | 20.4% |
| Buyback Yield | 7.8% | 6.4% | 6.6% | 10.5% | 11.5% | 0.5% | 3.3% | 7.1% | 9.3% | 11.0% | 16.2% |
| Total Shareholder Yield | 11.3% | 9.5% | 10.5% | 15.2% | 15.9% | 2.8% | 6.9% | 10.6% | 14.7% | 15.5% | 22.0% |
| Shares Outstanding | — | $67M | $71M | $75M | $84M | $87M | $86M | $92M | $99M | $104M | $111M |
Includes 30+ ratios · 21 years · Updated daily
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Quick answers to the most common questions about buying TNL stock.
Travel + Leisure Co.'s current P/E ratio is 18.3x. The historical average is 8.7x. This places it at the 94th percentile of its historical range.
Travel + Leisure Co.'s current EV/EBITDA is 10.1x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 9.6x.
Based on historical data, Travel + Leisure Co. is trading at a P/E of 18.3x. This is at the 94th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Travel + Leisure Co.'s current dividend yield is 3.53% with a payout ratio of 64.8%.
Travel + Leisure Co. has 27.2% gross margin and 17.8% operating margin. Operating margin between 10-20% is typical for established companies.
Travel + Leisure Co.'s Debt/EBITDA ratio is 5.8x, indicating high leverage. A ratio above 4x may signal elevated financial risk.
Key Metrics
Top Statement Risk
Rising loan loss provisions
Metrics are mathematically derived from official filings.
Margin Resilience Amid Cost Pressures
Gross margin expanded to 57.0% in Q2 2026 from 49.7% a year earlier, as reported in financial statements, while operating margin dipped slightly to 19.8%, indicating cost management offset by rising SG&A.
The gross margin improvement suggests a favorable sales mix or better cost control in resort operations, but the operating margin decline points to increased sales and marketing expenses, which are a primary drag on profitability. Net margin of 10.3% in Q2 2026 remains stable, yet the Q4 2025 negative net margin of -5.9% highlights earnings volatility from non-recurring items. Investors should monitor whether margin expansion is sustainable or a one-time benefit from timing.
ROIC Stability Masks Capital Intensity
ROIC has hovered between 2.5% and 3.6% over the past ten quarters, as per the ratio data, indicating a stable but modest return on invested capital, reflecting the capital-intensive nature of resort development.
The narrow ROIC range suggests the company is not compounding returns significantly, with efficiency gains offset by high capital requirements. ROA remains low at 1.6% in Q2 2026, consistent with a heavy asset base, while negative equity makes ROE uninformative. The stability in ROIC implies that management is maintaining returns but not improving them, which may limit valuation multiple expansion.
Working Capital Cycle Stretched by Financing
The cash conversion cycle widened to 347 days in Q2 2026 from 453 days a year earlier, as per the ratio data, driven by high DSO of 124 days and DIO of 235 days, reflecting the consumer financing portfolio.
The extended CCC indicates significant cash tied up in receivables and inventory, a structural feature of the vacation ownership model where sales are financed over time. DSO of 124 days in Q2 2026 is a sharp drop from 246 days in Q2 2025, suggesting improved collection or a change in sales mix, but DIO remains elevated. The negative working capital changes, averaging -$155M per quarter, as per cash flow data, highlight the cash absorption from loan originations, which investors should monitor for credit quality.
Debt Burden Overshadows Cash Position
Total debt of $5.7B in Q2 2026 is roughly 20 times cash of $282M, as per the balance sheet, with D/EBITDA at 23.6, indicating a highly leveraged position with limited liquidity buffer.
Interest coverage of 3.53 in Q2 2026, as reported in the ratio data, suggests debt service is currently manageable, but the high D/EBITDA reflects the capital-intensive model and reliance on debt to finance resort development and consumer loans. The negative equity of -$1.0B makes traditional D/E ratios meaningless, but the absolute debt level relative to cash is concerning. Rising interest rates could compress coverage further, especially if loan loss provisions increase.
Liquidity Ratios Mask Underlying Risk
The current ratio improved to 3.15 in Q2 2026 from 1.15 in Q1 2026, as per the balance sheet, but cash of $282M remains thin relative to $5.7B debt, indicating a fragile liquidity position.
The sharp improvement in the current ratio is likely due to seasonal working capital swings, but the quick ratio of 2.35 in Q2 2026 suggests inventory is not a major liquidity concern. However, the low cash balance relative to debt and the negative equity position imply that under severe stress, such as a spike in loan defaults, liquidity could be strained. Investors should monitor the provision for loan losses, as a deterioration would directly impact cash flow and liquidity.
Misapplied P/E Distorts Earnings Quality
The trailing P/E of 20.56 is misleading given the forward P/E of 9.31, as per the valuation data, because the trailing figure includes a loss-making Q4 2025, obscuring the underlying earnings power.
The most commonly misapplied ratio for TNL is the P/E, as the vacation ownership model's earnings are heavily influenced by non-recurring items and the provision for loan losses, which can distort trailing earnings. The forward P/E of 9.31 better reflects normalized earnings, but investors should adjust for the financing portfolio's credit risk. A more appropriate metric is EV/EBITDA, which at 10.69 is more comparable to peers like VAC and HGV, though it still understates the leverage risk. Analysts should focus on adjusted earnings that exclude one-time charges and incorporate expected loan losses.