...

Thomson Reuters Corporation (TRI) Intrinsic Value

DCF-based fair value calculation with Bear, Base, and Bull scenarios

Popular:

Thomson Reuters Corporation (TRI)

View Full Profile →

Intrinsic Value (DCF)

Current$124.84
→
Intrinsic$120.95
-3%
$80.06$120.95$202.24
Market implies 21% growth for 5 years
TRI appears fairly valued — current price aligns with our DCF estimate.
At $125, the market prices in continued strong cash flow growth (21%) — likely reflecting buybacks, margin stability, and ecosystem strength.
Range: Bear $80 → Bull $202. Current price implies expectations near the base case.
Discount ↓Growth →16%18%20%22%
8%$153$166$180$194
10%$103$112$121$131
12%$77$83$90$97
14%$61$66$71$77

Bull Case

  • Bull case ($202) offers 62% upside at 24% growth, 8% discount

Bear Case

  • Bear case ($80) implies 36% downside at 16% growth, 12% discount
Loading charts...

5-Year Free Cash Flow Projection

Year 1$2.11B
Year 2$2.54B
Year 3$3.04B
Year 4$3.65B
Year 5$4.38B
Terminal$69.44B

📐 Model Inputs

Growth Rate20.0%5Y CAGR (cascade: 5Y→3Y→TTM)
Discount Rate9.5%WACC estimate
Terminal Growth3.0%Perpetuity rate
Base Free Cash Flow$1.76BTTM actual
Bear g×0.8, r+2%
Base Historical CAGR
Bull g×1.2, r−1.5%
ℹ️

DCF estimates based on historical growth rates extrapolated forward. See FAQ below for full methodology.

Related Analysis

Full Stock ProfileCompare TRI vs AAPLStock Screener

Frequently Asked Questions

Is TRI stock undervalued or overvalued?
🟡 FAIRLY VALUED

TRI trades at $124.84, within 10% of our $120.95 intrinsic value estimate. At 9.5% WACC and 20.0% FCF growth, the market is pricing in assumptions roughly aligned with the 5-year historical CAGR. The valuation range spans $76.94 (bear) to $187.81 (bull).

What is TRI's intrinsic value?

Using a 5-year DCF model: Base FCF of $1.76B, projected at 20.0% 5Y CAGR (best of revenue, EPS, or FCF growth), discounted at 9.5% WACC, with 3.0% terminal growth. Terminal value calculated via Gordon Growth Model: TV = FCF₅ × (1+g) / (WACC−g). After deducting $1.22B net debt and dividing by 0.45B shares: Bear $76.94 | Base $120.95 | Bull $187.81. Current price $124.84 implies -7% to base case.

How is TRI's fair value calculated?

DCF Methodology:

① Project FCF years 1-5 using 20.0% growth derived from 5-year historical CAGR (best of revenue, EPS, or FCF growth, with 8% floor and 25% cap).

② Calculate terminal value at year 5 using perpetuity growth model with g=3.0%.

③ Discount all cash flows to PV using WACC=9.5%.

④ Sum PV of explicit period + PV of terminal value = Enterprise Value ($55.80B).

⑤ Subtract net debt, divide by shares outstanding.

Sensitivity analysis available above—adjust WACC ±2% or growth ±3% to stress-test the valuation. Implied EV/FCF multiple: 31.7x.