Travel Leisure Co.

Valuation Analysis

About the Company

Travel + Leisure Co., together with its subsidiaries, provides hospitality services and travel products in the United States and internationally. The company operates in two segments, Vacation Ownership; and Travel and Membership. The Vacation Ownership segment develops, markets, and sells vacation ownership interests (VOIs) to individual consumers, as well as offers consumer financing in connection with the sale of VOIs; and property management services at resorts; and This segment also experiences under hospitality and leisure brands, including Club Wyndham, WorldMark, Margaritaville Vacation Club, Sports Illustrated Resorts, Eddie Bauer Adventure Club, And Accor Vacation Club. The Travel and Membership segment operates various travel businesses, including vacation exchange brands, trave

Travel Leisure Co. Stock at a Glance

Travel Leisure Co. (TNL) is currently trading at $74.13 with a market capitalization of $4.6B. The trailing P/E ratio stands at 20.65x, with a forward P/E of 8.74x. The 52-week range spans from $47.74 to $81.00; the current price is 8.5% below the yearly high. Year-over-year revenue growth stands at +2.9%. The net profit margin stands at 5.83%.

💰 Dividend

Travel Leisure Co. pays an annual dividend of $2.40 per share, representing a yield of 3.24%. The payout ratio stands at 63.51%.

📊 Analyst Rating

12 analysts rate Travel Leisure Co. (TNL) on consensus: Strong Buy. The average price target is $87.08, implying +17.47% from the current price. Analyst price targets range from $74.00 to $105.00.

Travel Leisure Co.: The Investment Case in Detail

Travel Leisure Co. (TNL) operates in the Consumer Cyclical — specifically Travel Services — and is headquartered in United States. Below is a structured read of the investment case built directly from the latest fundamentals, valuation multiples, analyst positioning and smart-money flows. Each section translates raw numbers into the investment logic they imply, so you can decide whether the risk/reward fits your portfolio.

The Bull Case

The combination of a 50.74% gross margin and 18.83% operating margin shows the business converts revenue into profit efficiently — a hallmark of competitive moat. Wall Street consensus sits at Strong Buy with an average price target implying roughly 17.47% upside from current levels — analyst sentiment is firmly constructive.

The Bear Case

Revenue growth has slowed to just 2.9%, which is below nominal GDP — the business is no longer outgrowing the broader economy.

Valuation in Context

With a PEG ratio of 0.53, the price-to-earnings multiple is actually below the company's growth rate — classic value-meets-growth territory that Peter Lynch would have called a 'GARP' opportunity.

What to Watch Next

• The forward P/E of 8.74x is meaningfully below the trailing 20.65x — analysts expect earnings to step up; the next earnings release is the test.
• The dividend yield near 3.24% combined with a payout ratio of 63.51% leaves room for further hikes — a track record of consecutive raises is a strong income signal.

Investment Thesis: Strengths & Weaknesses

Technical Snapshot

Price trades above both the 50- and 200-day moving averages, with 50d above 200d — a classic bullish setup (golden-cross alignment).

Risk Profile

The data points to market-like volatility, elevated short interest (7.75%).

Trading Data

💵 Dividend Info

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