Thomson Reuters (TSX:TRI) Could Be 21% Below Fair Value Following KKR Sale And Court Win
Thomson Reuters (TSX:TRI) has closed the sale of a 51% stake in its Global Print unit to KKR and has secured a U.S. appeals court win in a copyright dispute with Ross Intelligence.
These developments land after a mixed stretch for Thomson Reuters investors, with the share price rising about 13% over the past 90 days but down 19.75% year to date, and a 1-year total shareholder return that has declined 31.35%. This hints that recent positive news is rebuilding momentum from a weaker longer-term base.
Scan how other AI oriented information providers are responding to similar shifts by reviewing our curated list of 37 profitable AI stocks that aren't just burning cash alongside Thomson Reuters.
Bulls see Thomson Reuters reshaping into an AI and data powerhouse after shedding most of Global Print and winning a copyright case. Bears focus on the share price slide. Which side does the current valuation support?
Most Popular Narrative: 21% Undervalued
The most followed narrative pegs Thomson Reuters fair value at CA$178.25, comfortably above the last close at CA$141.54, so the gap between price and narrative assumptions is wide enough that the story behind it matters.
The company's proprietary, authoritative content and integrated product suite positions it as a trusted platform, benefiting from the global proliferation of data and increasingly complex regulatory environments. This category leader status, combined with tight workflow integration, supports higher client retention and market share gains, boosting long-term recurring revenues.
See why 27 investors see Thomson Reuters as 21% undervalued.
The narrative uses a 6.72% discount rate and assumes revenue growth of roughly 8.3% a year with profit margins near 24%, then values those future earnings and cash flows at a fair value of CA$178.25 per share. With Thomson Reuters closing at CA$141.54, that implies a discount of about 20.6% to this fair value estimate.
Result: Fair Value of CA$178.25 (UNDERVALUED)
Still, the Thomson Reuters story can break if legal tech rivals or in house AI tools pressure pricing power, or if acquisitions fail to deliver expected synergies.
Find out about the key risks to this Thomson Reuters narrative.
Next Steps
Views on Thomson Reuters are split, which is exactly why your own read of the numbers matters. Review both sides of the story and weigh the 3 key rewards and 1 important warning sign.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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