Thomson Reuters Corp
TSX:TRI
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EV/EBIT
Enterprise Value to EBIT (EV/EBIT) ratio compares a company`s total enterprise value to its earnings before interest and taxes. It shows how much investors are paying for each dollar of the company`s earnings, including both equity and debt.
Enterprise Value to EBIT (EV/EBIT) ratio compares a company`s total enterprise value to its earnings before interest and taxes. It shows how much investors are paying for each dollar of the company`s earnings, including both equity and debt.
Valuation Scenarios
If EV/EBIT returns to its 3-Year Average (35.7), the stock would be worth CA$217.15 (71% upside from current price).
| Scenario | EV/EBIT Value | Implied Price | Upside/Downside |
|---|---|---|---|
| Current Multiple | 20.9 | CA$127.27 |
0%
|
| 3-Year Average | 35.7 | CA$217.15 |
+71%
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| 5-Year Average | 35.8 | CA$217.55 |
+71%
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| Industry Average | 18.7 | CA$113.47 |
-11%
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| Country Average | 14.5 | CA$87.9 |
-31%
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Forward EV/EBIT
Today’s price vs future ebit
| Today's Enterprise Value | EBIT | Forward EV/EBIT | ||
|---|---|---|---|---|
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CA$57.6B
|
/ |
Jan 2026
$2B
|
= |
|
|
CA$57.6B
|
/ |
Dec 2026
$2.4B
|
= |
|
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CA$57.6B
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/ |
Dec 2027
$2.8B
|
= |
|
|
CA$57.6B
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/ |
Dec 2028
$3.1B
|
= |
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Forward EV/EBIT shows whether today’s EV/EBIT still looks high or low once future ebit are taken into account.
Peer Comparison
| Market Cap | EV/EBIT | P/E | ||||
|---|---|---|---|---|---|---|
| CA |
|
Thomson Reuters Corp
TSX:TRI
|
56.8B CAD | 20.9 | 27.1 | |
| UK |
|
Relx PLC
LSE:REL
|
49.5B GBP | 18.5 | 23.9 | |
| UK |
I
|
IHS Markit Ltd
F:0M3
|
37.9B EUR | 40.2 | 36.5 | |
| IE |
|
Experian PLC
LSE:EXPN
|
26.2B GBP | 19.7 | 25.7 | |
| US |
|
Verisk Analytics Inc
NASDAQ:VRSK
|
24.6B USD | 18.8 | 27.2 | |
| US |
|
Equifax Inc
NYSE:EFX
|
23.6B USD | 24.7 | 35.8 | |
| CH |
|
SGS SA
SIX:SGSN
|
16.9B CHF | 18.9 | 25.8 | |
| US |
|
Leidos Holdings Inc
NYSE:LDOS
|
19.6B USD | 10.9 | 13.5 | |
| NL |
|
Wolters Kluwer NV
AEX:WKL
|
16.1B EUR | 12.8 | 12.3 | |
| US |
U
|
UL Solutions Inc
NYSE:ULS
|
18.4B USD | 0 | 0 | |
| US |
|
CoStar Group Inc
NASDAQ:CSGP
|
16.6B USD | -221.7 | 2 371.3 |
Market Distribution
| Min | 0 |
| 30th Percentile | 10.6 |
| Median | 14.5 |
| 70th Percentile | 20.6 |
| Max | 3 794.4 |
Other Multiples
Thomson Reuters Corp
Glance View
Thomson Reuters Corp. stands as a giant in the landscape of information services, leveraging its rich history and merger with Reuters Group in 2008 to create a robust platform that caters to professionals across multiple industries. The company, with its headquarters in Toronto, has carved out a niche by providing essential news, data, and analytics that fuel decision-making for businesses, governments, and professionals in sectors ranging from law and tax to finance and accounting. Central to its operations are its platforms like Westlaw and Checkpoint, which deliver critical legal and tax research tools, underscoring the company's commitment to addressing the nuanced needs of its clients. Additionally, its news services, driven by the storied Reuters brand, offer comprehensive, reliable news coverage that is indispensable to media outlets worldwide. Driving its profitability, Thomson Reuters has adeptly transformed its offerings into lucrative products and subscription models. It generates revenue primarily through subscription fees and the sale of digital content, with a significant portion derived from its legal and tax & accounting divisions. The company's ability to integrate advanced technology, such as AI and machine learning, into its platforms ensures that it remains at the forefront of innovation, providing value-added services that enhance client productivity and regulatory compliance. This focus on digital transformation not only fortifies its competitive edge but also positions Thomson Reuters to capitalize on emerging market trends, ensuring sustained growth in an increasingly data-driven world.