Is Tradeweb Markets Inc (TW) overvalued?
On Equity Rank's model estimate, TW trades 62% above its fair value. Tradeweb Markets Inc (TW) last closed at $127.73; the multi-method model fair value is $78.77.
| Price | Model fair value | Price vs model |
|---|---|---|
| $127.73 | $78.77 | 62% above |
What the answer rests on
- 0 of 10 valuation methods put TW's value above its price and 10 put it below, so the methods mostly agree.
- To justify today's price, TW's free cash flow would need to grow about 5.3% a year for ten years (a reverse discounted cash flow). Over the last three years it actually grew 25.3% a year.
- TW trades at 29.8 times its last year's earnings, against a median of 13.3 for 97 profitable Asset Management companies.
- Over the past year the price sat below the model fair value on 0% of trading days. The gap ranged from 15% above to 64% above the model fair value.
Read this before relying on it
The model fair value is an estimate from published financial statements. It is not a forecast of where the price goes, and it can be wrong. Within 10% either side we call it close to fair value: valuation models are not precise enough to read more into a smaller gap. Our own lists have no proven edge over the market yet; the live record shows every result, misses included.
Every valuation method behind TW's fair value · What prices assume · Other companies