Transurban Group (TCL.AX)
Industrials · ASX · Australia
Fundamentals
Valuation and ratings
Transurban Group trades at A$14.70, which is 60% above the A$5.85 our discounted cash flow model puts on the business. On that measure it screens as expensive, which is not the same as saying it will fall.
Our moat model scores it 55 out of 100, which is a moat, but not a deep one. A moat is a structural reason competitors cannot take the profits away, and it matters more to a long holding period than any single quarter's numbers do.
It changes hands at 97.5 times earnings. Be careful reading that in isolation: for a cyclical business a low P/E arrives at the top of the cycle, when profits are peaking and about to fall, which is exactly when the shares look cheapest and are not.
About Transurban Group
Transurban Group, together with its subsidiaries, engages in the development, operation, management, and maintenance of toll road networks in Australia and North America. The company operates 22 toll roads in Melbourne, Sydney, and Brisbane in Australia; the Greater Washington, the United States; and Montreal, Canada. Transurban Group was founded in 1996 and is based in Docklands, Australia.
TCL.AX passes 1 of our 30 screens today
Each screen prints the exact criteria it used, and the circumstances in which it is wrong.
Common questions
Is Transurban Group (TCL.AX) undervalued?
Against our discounted cash flow estimate of A$5.85, TCL.AX at A$14.70 is 60% above fair value. That is one model's answer, not a recommendation, and most of a DCF's output sits in a terminal value nobody can forecast.
What is TCL.AX's P/E ratio?
TCL.AX trades at 97.5 times earnings. A low P/E is not automatically cheap: on a cyclical company it is usually a warning that earnings are at a peak.
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Data from company filings, exchange quotes and SEC EDGAR 13F disclosures. Quotes are delayed. Metrics we do not have are left out rather than estimated. Educational information, not financial advice.