Q: please provide 3 current metrics that you used to value TIH. and compare to the last 3 years. will the proposed tariffs have a material effect on the company? thanks Richard
5i Research Answer:
TIH is trading at an attractive valuation compared to its three-year averages.
On a forward P/E basis, TIH is trading at 18.6x, (3-year averages range from 17.6x to 26x)
On a forward EV/EBIT basis, TIH is trading at 13.6x, (3-year averages range from 12.8x to 18.1x)
On a forward EV/EBITDA basis, TIH is trading at 10.5x (3-year averages range from 10.3x to 13.8x)
So far, the tariff is mostly noise; it could affect the company’s earnings in the near term, creating more volatility for TIH’s valuation. However, TIH has been in business for decades under different US administrations, so we don’t think the risk would affect TIH’s earnings power over time that much.