TPG (TPG) AI Stock Analysis

• Market Cap: $24.94B
• Dividend Yield: 3.03%
• Average Volume (3M): 1.31M
• Price to Earnings (P/E): 699.0
• Beta (1Y): 1.49
• Revenue Growth: 25.02%
• EPS Growth: 235.70%
• Country: US
• Employees: 1,900
• Sector: Financial
• Sector Strength: 70
• Industry: Asset Management
• EPS (TTM): 0.53
• Shares Outstanding: 146,498,660
• 10 Day Avg. Volume: 792,443
• 30 Day Avg. Volume: 1,313,355
• PEG Ratio: -3.62
• Price to Book (P/B): 8.03
• Price to Sales (P/S): 2.40
• P/FCF Ratio: 12.50
• Enterprise Value/Market Cap: 1.03
• Enterprise Value/Revenue: 8.49
• Enterprise Value/Gross Profit: 8.79
• Enterprise Value/Ebitda: 48.87
• 1Y Price Target: $70.10
• Price Target Upside: 4.69% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 68 Neutral
• Price Target: $74.00 ▲(10.51% Upside)

The score is primarily supported by strong technical uptrend and solid financial quality driven by cash-flow strength and improving leverage. This is reinforced by a constructive earnings update (fundraising/AUM growth and strong fee economics) and a positive strategic partnership. The main offset is valuation risk from the extremely high P/E, alongside still-weak profitability (low net margin and ROE).

Positive Factors

AUM and Fundraising Scale

Sustained 20% AUM growth and record fundraising build a durable management fee base and scale benefits. A $73B dry powder stockpile supports disciplined deployment, fee generation and deal flow over multiple years, underpinning predictable recurring revenues and growth optionality.

Strong Cash Generation

High free cash flow growth and near-par conversion of income to FCF strengthen internal funding for investments, dividends and deleveraging. Durable cash generation reduces reliance on external financing, supports fee distribution smoothing and funds strategic initiatives over the medium term.

Strategic Jackson Partnership

A long-term investment management deal and mutual equity stakes deepen TPG's insurance and credit franchise, creating a recurring, institutional AUM stream. The alignment and capital investment accelerate credit origination and product distribution, structurally enhancing fee-related earnings and growth runway.

Negative Factors

Weak Profitability Metrics

Low net margin and ROE indicate limited ability to convert revenue into shareholder returns despite healthy gross margins. Over time this constrains capital returns and reinvestment capacity unless operational efficiency or higher realized performance fees materially improve profit conversion.

Performance Fee Timing Volatility

Reliance on performance fees that are highly timing-dependent creates persistent earnings volatility and lumpy cash flows. This structural unpredictability complicates forecasting distributable earnings and weakens the stability of reported profitability and dividend coverage over multi-quarter horizons.

Rising Net Debt from Growth Activities

Incremental net leverage to fund acquisitions and seeding improves growth capabilities but reduces financial flexibility and increases interest exposure. If deployment or realizations lag expectations, elevated net debt can strain cash returns and constrain capital allocation choices over the medium term.

TPG Business Overview & Revenue Model

Company Description

TPG Inc. operates as an alternative asset manager worldwide. It offers investment management services to unconsolidated funds, collateralized loan obligations, and other vehicles; monitoring services to portfolio companies; advisory services, debt and equity arrangements, and underwriting and placement services; and capital structuring and other advisory services to portfolio companies. The company invests in private equity funds, real estate funds, fund of hedge funds, and credit funds. TPG Inc. was founded in 1992 and is headquartered in Fort Worth, Texas. TPG Inc. operates as a subsidiary of TPG GP A, LLC.

How the Company Makes Money

TPG generates revenue primarily through management fees and performance fees. Management fees are charged as a percentage of the assets under management (AUM) and provide a steady income stream for the firm. Performance fees, also known as carried interest, are earned when TPG's investments exceed predetermined return thresholds, creating significant upside potential. Additionally, TPG benefits from its diverse investment portfolio and strategic partnerships with various institutional investors, enhancing its capital base and investment opportunities. The firm also engages in co-investments with partners, allowing it to share risks and rewards on larger deals, further contributing to its earnings.

TPG Financial Statement Overview

Summary

TPG demonstrates solid financial performance with strong cash flow generation and improving leverage. Revenue growth is promising at 7.24%, but profitability margins are a concern with a net profit margin of 1.71%. The balance sheet shows moderate financial health with a low debt-to-equity ratio of 0.17, but a low return on equity of 3.51%.

Income Statement

TPG's income statement shows a mixed performance. The TTM data indicates a healthy revenue growth rate of 7.24%, suggesting a positive trajectory. However, the net profit margin is relatively low at 1.71%, indicating challenges in converting revenue into profit. The gross profit margin is strong at 68.40%, but the EBIT and EBITDA margins are modest at 4.01% and 10.39%, respectively, reflecting potential operational inefficiencies.

Balance Sheet

The balance sheet reveals a moderate financial position. The debt-to-equity ratio has improved to 0.17 in the TTM, indicating reduced leverage compared to previous years. However, the return on equity is low at 3.51%, suggesting limited profitability relative to shareholder equity. The equity ratio is not explicitly calculated, but the overall asset base is substantial, providing a stable foundation.

Cash Flow

TPG's cash flow statement is strong, with a significant free cash flow growth rate of 95.52% in the TTM, indicating robust cash generation capabilities. The operating cash flow to net income ratio is healthy at 0.77, and the free cash flow to net income ratio is high at 0.95, reflecting efficient cash conversion from earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.02B	2.62B	1.86B	1.50B	5.58B	2.27B
Gross Profit	2.92B	2.54B	1.82B	1.48B	5.56B	2.25B
EBITDA	525.35M	110.56M	131.33M	9.24M	4.69B	1.46B
Net Income	120.45M	23.48M	80.09M	92.43M	2.18B	927.58M
Balance Sheet
Total Assets	13.02B	10.54B	9.37B	7.94B	8.96B	7.00B
Cash, Cash Equivalents and Short-Term Investments	1.08B	808.02M	665.19M	1.11B	978.10M	861.92M
Total Debt	2.49B	1.58B	1.26B	592.45M	621.45M	490.63M
Total Liabilities	9.25B	6.94B	6.01B	4.86B	1.70B	1.48B
Stockholders Equity	1.14B	784.10M	579.16M	509.67M	1.61B	2.46B
Cash Flow
Free Cash Flow	867.08M	504.01M	703.79M	1.37B	1.47B	-20.16M
Operating Cash Flow	888.02M	532.15M	720.52M	1.38B	1.47B	95.39M
Investing Cash Flow	-256.10M	-44.47M	-373.56M	-3.01M	-37.74M	-108.10M
Financing Cash Flow	-716.16M	-344.86M	-789.23M	-1.24B	-1.32B	250.33M

TPG Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 66.96
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TPG, the sentiment is Positive. The current price of 66.96 is above the 20-day moving average (MA) of 66.07, above the 50-day MA of 60.62, and above the 200-day MA of 54.93, indicating a bullish trend. The MACD of 1.63 indicates Positive momentum. The RSI at 58.30 is Neutral, neither overbought nor oversold. The STOCH value of 56.70 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TPG.

TPG Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ARCC	80 Outperform	$14.44B	10.44	10.06%	9.64%	10.34%	-24.16%
BX	72 Outperform	$187.35B	44.54	35.17%	3.02%	33.12%	19.86%
ARES	70 Outperform	$55.83B	74.88	18.64%	2.65%	50.70%	7.32%
KKR	69 Neutral	$116.62B	56.93	8.73%	0.56%	-33.80%	-24.81%
TPG	68 Neutral	$24.94B	698.96	7.19%	3.03%	25.02%	235.70%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
CG	59 Neutral	$22.96B	35.99	11.85%	2.30%	-24.62%	437.16%

TPG Corporate Events

TPG Forms Strategic Investment Partnership With Jackson Financial

On January 6, 2026, TPG Inc. and Jackson Financial Inc. announced a long-term strategic investment management partnership under which TPG will manage at least $12 billion of Jackson general account assets, with incentives tied to a potential expansion to $20 billion, initially focused on investment-grade asset-based finance and direct lending. As part of the transaction, which is expected to close in the first quarter of 2026 subject to customary conditions, TPG will make a $500 million minority equity investment in Jackson for an approximate 6.5% stake, while Jackson will receive $150 million of TPG Class A shares and potentially additional stock if assets under management reach $20 billion, creating mutual ownership stakes, reinforcing TPG’s credit franchise and insurance strategy, and providing Jackson with differentiated investment opportunities and capital to support its growth and competitiveness in the U.S. retirement services market; both parties are subject to multi-year restrictions and phased limits on selling the shares received, underscoring the long-term nature of the partnership.

The most recent analyst rating on (TPG) stock is a Hold with a $71.00 price target. To see the full list of analyst forecasts on TPG stock, see the TPG Stock Forecast page.

TPG Approves Special Long-Term Equity Awards for Executives

On December 18, 2025, TPG Inc.’s board compensation committee approved a special long-term equity incentive award for CEO Jon Winkelried with a face value of $25 million in restricted stock units (RSUs), to be granted on January 13, 2026 and vesting in three tranches between 2029 and 2031, with detailed provisions for forfeiture, orderly retirement, qualifying termination, and change-in-control scenarios designed to support retention and align his pay with perceived performance and shareholder value creation. On the same date, the company also approved special RSU-based equity grants for CFO Jack Weingart and COO Anilu Vazquez-Ubarri, with face values of $7.5 million and $5 million respectively, to be granted on January 13, 2026 and vesting in equal annual installments from 2027 through 2031, moves that aim to bring their compensation in line with market levels, reward both organic and inorganic growth, and strengthen long-term executive retention under TPG’s existing recoupment and clawback policies.

The most recent analyst rating on (TPG) stock is a Buy with a $82.00 price target. To see the full list of analyst forecasts on TPG stock, see the TPG Stock Forecast page.