Latest Ratios: P/E Ratio 29.0x · EV/EBITDA 15.3x · ROE 12.6%. (1996–2025 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 | $43.0B | $60.3B | $73.5B | $68.9B | $58.3B | $62.4B | $43.0B | $37.9B | $32.8B | $31.9B | $33.3B |
| Enterprise Value | $44.6B | $61.9B | $74.8B | $71.3B | $62.3B | $65.7B | $45.3B | $40.7B | $33.3B | $38.2B | $38.5B |
| P/E Ratio → | 28.96 | 39.42 | 33.33 | 25.19 | 45.55 | 11.06 | 36.12 | 23.74 | 463.00 | 22.90 | 33.22 |
| P/S Ratio | 5.75 | 8.06 | 10.13 | 10.15 | 8.80 | 9.82 | 7.19 | 6.42 | 5.96 | 6.02 | 2.98 |
| P/B Ratio | 3.71 | 5.06 | 6.13 | 6.23 | 4.91 | 4.51 | 4.31 | 3.97 | 3.56 | 2.35 | 2.51 |
| P/FCF | 20.94 | 29.36 | 41.76 | 37.68 | 44.55 | 27.59 | 32.91 | 188.19 | 23.26 | 20.40 | 16.22 |
| P/OCF | 15.93 | 22.34 | 31.44 | 28.92 | 31.01 | 22.74 | 23.40 | 52.81 | 16.76 | 15.18 | 11.30 |
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 | — | 8.27 | 10.30 | 10.49 | 9.40 | 10.35 | 7.58 | 6.89 | 6.06 | 7.21 | 3.44 |
| EV / EBITDA | 15.27 | 21.19 | 25.51 | 23.32 | 24.36 | 32.65 | 16.67 | 21.25 | 23.83 | 23.30 | 13.07 |
| EV / EBIT | 22.42 | 29.22 | 33.53 | 32.04 | 27.26 | 52.35 | 23.08 | 34.57 | 40.12 | 43.84 | 26.57 |
| EV / FCF | — | 30.14 | 42.45 | 38.96 | 47.61 | 29.07 | 34.71 | 202.01 | 23.64 | 24.41 | 18.72 |
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 | 75.8% | 75.8% | 75.3% | 77.0% | 76.1% | 75.1% | 80.6% | 76.1% | 81.1% | 83.7% | 81.9% |
| Operating Margin | 26.6% | 26.6% | 29.1% | 34.3% | 27.7% | 19.6% | 32.2% | 20.3% | 14.2% | 19.5% | 12.4% |
| Net Profit Margin | 20.1% | 20.1% | 30.4% | 39.7% | 20.2% | 89.6% | 18.8% | 26.5% | 71.5% | 26.3% | 27.7% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 12.6% | 12.6% | 19.2% | 23.5% | 10.4% | 47.8% | 11.5% | 16.7% | 34.5% | 10.4% | 23.5% |
| ROA | 8.3% | 8.3% | 11.9% | 13.3% | 6.1% | 28.4% | 6.4% | 9.1% | 18.1% | 5.1% | 10.9% |
| ROIC | 11.2% | 11.2% | 11.9% | 11.9% | 8.3% | 6.3% | 11.7% | 8.1% | 4.0% | 4.1% | 5.3% |
| ROCE | 13.5% | 13.5% | 13.9% | 14.5% | 10.1% | 7.1% | 13.2% | 8.4% | 4.3% | 4.6% | 5.9% |
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 | 0.18 | 0.18 | 0.26 | 0.32 | 0.42 | 0.29 | 0.41 | 0.37 | 0.35 | 0.52 | 0.56 |
| Debt / EBITDA | 0.73 | 0.73 | 1.05 | 1.16 | 1.95 | 2.01 | 1.50 | 1.87 | 2.30 | 4.29 | 2.51 |
| Net Debt / Equity | — | 0.13 | 0.10 | 0.21 | 0.34 | 0.24 | 0.24 | 0.29 | 0.06 | 0.46 | 0.39 |
| Net Debt / EBITDA | 0.55 | 0.55 | 0.42 | 0.77 | 1.57 | 1.66 | 0.86 | 1.45 | 0.38 | 3.83 | 1.74 |
| Debt / FCF | — | 0.78 | 0.69 | 1.28 | 3.06 | 1.48 | 1.80 | 13.82 | 0.38 | 4.01 | 2.50 |
| Interest Coverage | 11.57 | 11.57 | 13.23 | 10.31 | 12.33 | 6.73 | 10.37 | 6.33 | 3.29 | 2.53 | 4.16 |
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 | 0.64 | 0.64 | 1.02 | 0.90 | 0.57 | 0.95 | 1.50 | 0.95 | 1.68 | 0.62 | 1.02 |
| Quick Ratio | 0.64 | 0.64 | 1.01 | 0.90 | 0.57 | 0.94 | 1.49 | 0.95 | 1.67 | 0.61 | 1.01 |
| Cash Ratio | 0.17 | 0.17 | 0.55 | 0.39 | 0.24 | 0.32 | 0.88 | 0.41 | 1.02 | 0.18 | 0.54 |
| Asset Turnover | — | 0.42 | 0.39 | 0.36 | 0.31 | 0.29 | 0.33 | 0.34 | 0.32 | 0.20 | 0.40 |
| Inventory Turnover | 78.65 | 78.65 | 85.29 | 78.00 | 54.66 | 56.50 | 44.54 | 61.35 | 31.45 | 27.87 | 63.06 |
| Days Sales Outstanding | — | 54.24 | 58.03 | 64.15 | 62.62 | 64.69 | 74.17 | 76.57 | 91.70 | 100.40 | 47.89 |
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 | 2.4% | 1.7% | 1.2% | 1.3% | 1.4% | 1.2% | 1.8% | 1.9% | 2.6% | 3.1% | 2.9% |
| Payout Ratio | 70.1% | 70.1% | 40.7% | 33.5% | 59.9% | 13.5% | 68.5% | 45.7% | 21.7% | 71.0% | 31.3% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 3.5% | 2.5% | 3.0% | 4.0% | 2.2% | 9.0% | 2.8% | 4.2% | 0.2% | 4.4% | 3.0% |
| FCF Yield | 4.8% | 3.4% | 2.4% | 2.7% | 2.2% | 3.6% | 3.0% | 0.5% | 4.3% | 4.9% | 6.2% |
| Buyback Yield | 2.4% | 1.7% | 0.8% | 4.6% | 2.1% | 2.2% | 0.5% | 1.3% | 28.8% | 3.2% | 5.0% |
| Total Shareholder Yield | 4.7% | 3.4% | 2.0% | 5.9% | 3.5% | 3.5% | 2.3% | 3.2% | 31.4% | 6.4% | 7.9% |
| Shares Outstanding | — | $450M | $451M | $464M | $485M | $495M | $498M | $503M | $644M | $630M | $655M |
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying TRI stock.
Thomson Reuters Corporation's current P/E ratio is 29.0x. The historical average is 26.1x. This places it at the 62th percentile of its historical range.
Thomson Reuters Corporation's current EV/EBITDA is 15.3x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 17.0x.
Thomson Reuters Corporation's return on equity (ROE) is 12.6%. The historical average is 14.2%.
Based on historical data, Thomson Reuters Corporation is trading at a P/E of 29.0x. This is at the 62th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Thomson Reuters Corporation's current dividend yield is 2.38% with a payout ratio of 70.1%.
Thomson Reuters Corporation has 75.8% gross margin and 26.6% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
Thomson Reuters Corporation's Debt/EBITDA ratio is 0.7x, indicating low leverage. A ratio below 2x is generally considered financially healthy.
Key Metrics
Top Statement Risk
LSEG stake volatility and aggressive shareholder returns
Premium Pricing for AI-Driven Growth Model
TRI trades at a forward EV/EBITDA of 12.42, a discount to its 10-quarter average of 3.84, but at a premium to peers like FactSet (12.54) and S&P Global (18.30), suggesting the market is pricing in its superior margin profile and potential for AI-led value-based pricing.
The P/E ratio of 30.70 and P/FCF of 22.20 reflect a premium for the business's high recurrent revenue and fortress-like cash generation, yet the PEG of 4.20 signals that current growth is not fully priced relative to the earnings trajectory. When compared to the peer group, TRI's valuation is a blend of growth and quality; it trades at a significant discount to Moody's (37.54 P/E) but at a premium to FactSet, indicating the market differentiates TRI's legal information moat. The forward multiples compressing faster than the TTM multiples implies analysts are modeling meaningful margin expansion or growth acceleration from the Westlaw Precision AI initiatives.
Leverage Shift for Capital Returns
TRI's debt-to-equity ratio has increased to 0.29 from a low of 0.17, reflecting a deliberate shift to using debt to fund shareholder returns, while interest coverage remains ample at 11.60x, suggesting the debt is comfortably serviced.
The move from a near-net-cash position to a more leveraged structure is a significant change in financial policy for a company with such stable cash flows. The current leverage level remains conservative compared to peers like Moody's (1.75 D/E) and is supported by the robust, recurring revenue stream. However, the pace of the change—where total debt increased by over $1B in a single quarter—investors should monitor for covenant compliance and refinancing risk if rates remain elevated. This strategy appears to be a financial engineering play to boost ROE and EPS, but it introduces a new layer of risk to what was previously a virtually unleveraged balance sheet.
Working Capital Management Shows Cash Flow Volatility
The cash conversion cycle is highly erratic, swinging from positive 21 days in Q4 2024 to negative 136 days in Q2 2025, primarily driven by large, inconsistent swings in Days Payable Outstanding (DPO), which appear to reflect strategic timing of payments rather than operational dysfunction.
The company's Days Sales Outstanding (DSO) is stable at around 54 days, which is reasonable for a B2B subscription model, but the extreme DPO volatility (from 35 to 197 days) dominates the CCC. This pattern suggests management is actively optimizing the payment cycle to generate operating cash flow, potentially by extending supplier payment terms significantly. While this temporarily boosts cash flow, such large swings make it difficult to assess the underlying efficiency of the business. The absence of consistent inventory data (DIO) precludes a full analysis, but for a digital company, the key efficiency metric is revenue per employee, which is not provided.
The Peril of Misapplied Liquidity Ratios
The current ratio, which has plummeted to 0.51, is the most commonly misapplied metric for TRI's business model, as it incorrectly signals distress for a company with massive recurring cash flows and substantial undrawn credit facilities.
Traditional liquidity analysis focuses on the current ratio to assess short-term solvency, but for a high-margin subscription business like TRI, this metric is misleadingly low due to the classification of deferred revenue (a liability) and the active management of working capital to optimize capital structure. The company's actual liquidity is best assessed by its ability to generate operating cash flow (OCF) of over $2B annually and its access to debt capital markets, not by the static level of current assets. Using the current ratio to predict financial distress would cause an analyst to miss the fundamental strength of TRI's cash generation model and its capacity to service its modest debt load. A more appropriate metric would be the Net Debt / OCF ratio, which provides a clearer picture of leverage sustainability.