Value Sense
TNL
Travel + Leisure Co. (TNL)
Last Price$55.4(0.7%)
Market Cap$3,827.2M
WACC
31.4%
Cost of Equity
11.1%
Cost of Debt
45.1%
Debt to Equity
148.1%
Beta
0.4
Stock quality
6/10
Good
TNL
is 255.6% undervalued
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TNL WACC

Recent WACC calculation

as of Mar 03, 2025
Cost of Equity
% share of Total Capital
11.1%
40.3%
Risk-free rate
4.2%
Beta
1.5
Equity Risk Premium
4.6%
Country risk premium
0.0%
Cost of Debt (after-tax)
% share of Total Capital
45.1%
59.7%
Average Cost of Debt
60.0%
Effective Tax Rate
24.8%
WACC
31.4%

WACC dynamics

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TNL Cost of Equity

Recent Cost of Equity calculation

as of Mar 03, 2025
Risk-free rate
4.2%
Beta
1.5
Equity risk premium
4.6%
Country risk premium
0.0%
Cost of Equity
11.1%

Cost of Equity dynamics

TNL vs Peer Set: Discount Rate Comparison

WACC
Cost of Equity

General

Discount rate

financials

Company name

Revenue growth

EPS growth

Net Income margin

Travel + Leisure Co. logo
Travel + Leisure Co.TNL
31.4%
3.0%
10.2%
10.6%
Median Peer Set
8.4%
21.8%
27.4%
13.2%
Despegar.com, Corp. logo
Despegar.com, Corp.DESP
27.7%
31.2%
(90.4%)
3.5%
MakeMyTrip Limited logo
MakeMyTrip LimitedMMYT
13.0%
32.0%
N/A
27.7%
Booking Holdings Inc. logo
Booking Holdings Inc.BKNG
9.7%
25.0%
54.7%
20.1%
Airbnb, Inc. logo
Airbnb, Inc.ABNB
9.2%
11.9%
(44.3%)
23.9%
Expedia Group, Inc. logo
Expedia Group, Inc.EXPE
8.6%
6.6%
70.7%
9.0%
Royal Caribbean Cruises Ltd. logo
Royal Caribbean Cruises Ltd.RCL
8.1%
18.6%
65.0%
17.5%
Trip.com Group Limited logo
Trip.com Group LimitedTCOM
7.4%
110.8%
355.4%
22.3%
Tripadvisor, Inc. logo
Tripadvisor, Inc.TRIP
6.9%
2.6%
1,601.5%
0.3%
Sabre Corporation logo
Sabre CorporationSABR
4.2%
4.2%
(53.2%)
(9.2%)
Norwegian Cruise Line Holdings Ltd. logo
Norwegian Cruise Line Holdings Ltd.NCLH
3.0%
76.5%
N/A
1.9%

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FAQ

What is Travel + Leisure Co.'s discount rate as of Mar 03, 2025?

As of Mar 03, 2025, Travel + Leisure Co.'s discount rate is 31.38%. This rate is determined based on the weighted average cost of capital (WACC) and the cost of equity, factoring in Travel + Leisure Co.'s capital structure and risk profile.

What is Travel + Leisure Co.'s weighted average cost of capital (WACC)?

Travel + Leisure Co.'s WACC as of Mar 03, 2025, is 31.38%. This value is calculated by blending the cost of debt and cost of equity, reflecting the company’s overall cost of financing its operations.

What is Travel + Leisure Co.'s cost of equity?

Travel + Leisure Co.'s cost of equity is 11.1%, as of Mar 03, 2025. This is the return that shareholders expect based on the stock's risk level and market conditions, used to calculate the discount rate for valuing future cash flows.