What drives this asset manager’s business?
TPG Inc is an alternative asset manager that raises and invests capital across its platforms for clients. The firm earns revenue from managing investment vehicles and participating in investment performance across its strategies. It operates at institutional scale, with a public equity float and a market capitalization of about USD 15.4 billion. The business is built around sourcing deals, deploying capital, and managing portfolios over multi‑year holding periods.
Are rising revenues improving profitability?
FundamentalsFor 2025, reported in USD, revenue was about USD 4.7 billion and net income was roughly USD 600 million. Revenue grew 33.4% versus the prior annual period, while the trailing operating margin was 8.18% and the trailing net profit margin 3.82%.
On the balance sheet, cash stood at about USD 826 million at year‑end. Depreciation and amortization totaled roughly USD 145 million, and trailing ROE was 14.17%, framing the recent earnings level against the equity base.
Is the market overpaying for growth?
DCF / MultiplesAt USD 40.02, the stock trades above the range supported by the discounted‑cash‑flow analysis, placing the current price beyond what the model supports even under more favorable assumptions. That pricing also coincides with a 97.50 trailing P/E and 34.21 EV/EBITDA, both high relative to the earnings base the business is currently generating.
Price Exceeds Current Fundamentals
TakeawayThe valuation already assumes much higher cash earnings than today’s margins show. Returns on equity are decent, but the price implies more than “decent.” For this to work, profitability must rise meaningfully from current levels. If margins stay thin, the gap between price and fundamentals remains.