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DCF Valuation
Base-case fair value
$23.37
Intrinsic $31.16 · 25% MOS
Current price: $75.93
Base-case summary
Our base-case DCF for Travel & Leisure Co. (TNL) projects 10 years of free cash flow growth at 2.0% for years 1–5 and 1.0% for years 6–10, anchored to a default 8% growth assumption, then applies a 2.5% perpetual growth rate and a 8.0% discount rate. Starting from $442M in trailing free cash flow, this produces an intrinsic value of $31.16 per share. A 25% safety margin gives a fair value of $23.37, suggesting the stock is currently 69% overvalued against the $75.93 market price.
See 3 scenarios side by side
Conservative, Base, and Optimistic fair values, plus the sensitivity matrix and FCF history. Free account.
Model inputs
TTM Free Cash Flow
$442M
Cash & equivalents
$254M
Total debt
$5.9B
Shares outstanding
64M