TNL Fair Value
What is the fair value of TNL?
As of 2025-07-12, the Fair Value of Travel + Leisure Co (TNL) is 127.26 USD. This value is based on the Peter Lynch's Fair Value formula. With the current market price of 57.89 USD, the upside of Travel + Leisure Co is 119.8%.
Is TNL a good investment?
With the market price of 57.89 USD and our fair value calculation, Travel + Leisure Co (TNL) is a good investment. Investing in TNL stocks now will result in a potential gain of 119.8%.
Peter Lynch's formula is:
The earnings growth rate we use in the formula is the average growth rate of net income/earnings over the last 5 years. If the average growth rate is smaller than 5%, we set it to 5%. If it is larger than 25%, we set it to 25%. If the TTM EPS is negative, Peter Lynch Fair Value's result can be unreliable.
| Historical Earnings | ||||||
| 12-2020 | 12-2021 | 12-2022 | 12-2023 | 12-2024 | 5Y Avg | |
| Net income | -255 | 308 | 357 | 396 | 411 | 243 |
| YoY growth | -150.3% | 220.8% | 15.9% | 10.9% | 3.8% | 20.2% |
| Market Cap (mil) | 3,845 |
| P/E | 9.2x |
| Forward P/E | 9.8x |
| EPS | 6.29 |
| Avg earnings growth rate | 20.2% |
| TTM earnings | 418 |
Peter Lynch is one of the most legendary investors/fund managers of all time. His philosophy for stock investing is very simple and straightforward: he invests in stocks that are undervalued, meaning its P/E is less than or equal to its earnings growth rate. He believes that if a stock is trading at its fair value, the PEG ratio, which was also invented by him, should be 1.
Therefore, his formula to determine a company's fair value is:
Peter Lynch Fair Value = Earnings Growth Rate * EPS * PEG
PEG is set to 1 so we can ignore it in the calculation. Based on the formula, if the earnings growth rate of a company is 15%, Peter Lynch is willing to buy its share up to P/E = 15.