The purpose of this brief post is to disclose the purchase of an additional 200 Thomson Reuters Corporation (TRI) shares on January 20, 2026 @ $USD122.72 in one of the ‘Core’ accounts in the FFJ Portfolio.
In my December 15, 2025 post I disclose my rationale for initiating a new position. I conclude that post stating:
While my current exposure is only 300 shares, I may acquire additional shares if the valuation improves.
As luck would have it, TRI’s share price has subsequently experienced further weakness hence the additional purchase.
TRI is releasing its Q4 and FY2025 results on February 5, 2026 at which time I intend to re-analyze its valuation. For now, I compare TRI’s valuation when initiated a position versus its current valuation.
Valuation
Using my $122.72 purchase price and the currently available adjusted diluted EPS broker estimates, TRI’s forward adjusted diluted PE levels are:
- FY2025 – 16 brokers – ~31.5 using a mean of $3.90 and low/high of $3.77 – $4.00.
- FY2026 – 16 brokers – ~27.6 using a mean of $4.45 and low/high of $4.22 – $4.66.
- FY2027 – 12 brokers – ~24.4 using a mean of $5.03 and low/high of $4.70 – $5.42.
The forward adjusted diluted PE levels are slightly superior to when I initiated a position.
Conventional FCF Calculation
In the first 9 months of FY2025, TRI generated $3.141 of FCF calculated using my conventional method of calculating FCF (see December 15, 2025 post for calculations). If I extrapolate the YTD FCF for the first 9 months of the year, TRI should generate another $1.047 of FCF in Q4 2025 ($3.141/3 = $1.047). Adding $3.141 and $1.047 we get $4.188. Using a margin of safety, TRI could generate ~$4.10 of FCF for the year for a forward P/FCF of ~30 (based on my ~$122.72 purchase price).
Modified FCF Calculation
In the first 9 months of FY2025, TRI generated $2.855 of FCF calculated using my modified method of calculating FCF. If I extrapolate the YTD FCF for the first 9 months of the year, TRI should generate another $0.95 of FCF in Q4 2025 ($2.855/3 = $0.95). Adding $2.855 and $0.95 we get $3.805. Using a margin of safety, TRI could generate ~$3.75 of FCF for the year for a forward P/FCF is ~32.7 (based on my ~$122.72 purchase price).
In my prior post I reflect the following:
On December 15, 2025, I initiated a position @ $131.75. In the first 9 months of FY2025, it generated $2.59 diluted EPS and $2.85 adjusted diluted EPS. If it generates similar results in Q4 as in the first 3 quarters, TRI should generate an additional ~$0.86/share of diluted EPS and ~$0.95/share in adjusted diluted EPS. This would lead to ~$3.45 of diluted EPS and ~$3.80 of adjusted diluted EPS for FY2025.
Using my purchase price, the forward diluted PE and adjusted diluted PE estimates are ~38.2 and ~34.7.
My diluted EPS and adjusted diluted EPS estimates do not consider the repurchase of another 2.1 million common shares already made in Q4.
Using my purchase price and the currently available adjusted diluted EPS broker estimates, TRI’s forward adjusted diluted PE levels are:
- FY2025 – 16 brokers – ~33.8 using a mean of $3.90 and low/high of $3.77 – $4.00.
- FY2026 – 16 brokers – ~29.5 using a mean of $4.46 and low/high of $4.22 – $4.66.
- FY2027 – 12 brokers – ~26.2 using a mean of $5.03 and low/high of $4.70 – $5.42.
I place very little reliance on broker estimates as much can happen to make these estimates irrelevant. Furthermore, the disparity in estimates implies that the brokers which cover TRI have very different outlooks.
My preference is to analyze a company’s valuation using the free cash flow a company generates.
Conventional FCF Calculation
In the first 9 months of FY2025, TRI generated $3.141 of FCF calculated using my conventional method of calculating FCF. If I extrapolate the YTD FCF for the first 9 months of the year, TRI should generate another $1.047 of FCF in Q4 2025 ($3.141/3 = $1.047). Adding $3.141 and $1.047 we get $4.188. Using a margin of safety, TRI could generate ~$4.10 of FCF for the year for a forward P/FCF of ~32.1.
Modified FCF Calculation
In the first 9 months of FY2025, TRI generated $2.855 of FCF calculated using my modified method of calculating FCF. If I extrapolate the YTD FCF for the first 9 months of the year, TRI should generate another $0.95 of FCF in Q4 2025 ($2.855/3 = $0.95). Adding $2.855 and $0.95 we get $3.805. Using a margin of safety, TRI could generate ~$3.75 of FCF for the year for a forward P/FCF is ~35.1.
Final Thoughts
My Final Thoughts are the same as in my December 15, 2025 post.
I wish you much success on your journey to financial freedom!
Note: Please send any feedback, corrections, or questions to finfreejourney@gmail.com.
Disclosure: I am long TRI (the US listed shares).
Disclaimer: I do not know your circumstances and do not provide individualized advice or recommendations. I encourage you to make investment decisions by conducting your research and due diligence. Consult your financial advisor about your specific situation.
I wrote this article myself and it expresses my own opinions. I do not receive compensation for it and have no business relationship with any company mentioned in this article.
[…] In this December 15, 2025 post I disclose a new TRI position with the purchase of 300 shares @ USD~$131.75 in one of the ‘Core’ accounts in the FFJ Portfolio. I subsequently purchased an additional 200 shares on January 20, 2026 @ $USD122.72 in the same account. I disclose this purchase in this January 10, 2026 post. […]