TPG Inc. Class A Common Stock (TPG)

FairStock Score: 61/100 — STEADY

Key Financials

Strengths

• Generates $1.2 billion in annual free cash flow (7.6% yield on market cap)
• Solid return on equity of 15.5% above cost of capital
• Revenue growth of 41.9% demonstrates strong top-line momentum
• Attractive 4.5% dividend yield providing steady income returns

Concerns

• Trades significantly above Graham Number ($9) with negative 382% margin of safety—limited downside protection
• Altman Z-Score of 1.1 places it in the financial distress zone—elevated bankruptcy risk

AI Analysis

TPG Inc. Class A Common Stock is a mid-cap financial services company valued at $16.4 billion. The business generates $4.7 billion in annual revenue with a 1.7% net margin and $1.2 billion in free cash flow. From a quality standpoint, TPG shows distressed Altman Z-Score of 1.1 warrants caution and adequate 16% ROE. On valuation, the stock is commanding a steep 96.6x multiple, with trades far above its Graham Number ($9) with no margin of safety. Growth dynamics show revenue growing at 41.9% and profit growth of 494.1%. The 4.5% dividend yield adds an income component for patient holders. Our composite FairStock Score of 61/100 reflects above-average fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

TPG's 42% revenue growth trajectory could accelerate as it captures additional market share in the financial services sector. With $1.2 billion in annual free cash flow (7.6% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

At 97x earnings, any growth disappointment triggers rapid multiple compression—a 20% earnings miss plus multiple contraction to 20x implies 40%+ downside. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer