Market Pulse50Neutral

TriNet Group, Inc.Opportunity Rank #85(TNET) Intrinsic Value & DCF Analysis (2026)

Sector: Industrials

Current Price

$38.90

Last updated: Mar 24, 2026

Price vs Intrinsic Value

$38.90
Price
$140.88
Intrinsic Value
Undervalued by 262%MOS: $112.70

Fundamental Score

61/100
Neutral

Weighted across 6 signals

Narrative Score

55/100
Improving

No change vs previous

The intrinsic value of TriNet Group, Inc. (TNET) is estimated at $140.88 per share based on a 10-year discounted cash flow (DCF) analysis. At the current price of $38.90, the stock appears undervalued relative to its projected cash flow fundamentals. This estimate assumes a 6.60% long-term growth rate and a 10.00% discount rate (calculated: 7.71%), reflecting expected future free cash flow and cost of capital.

The intrinsic value of TriNet Group, Inc. (TNET) is estimated at $140.88 per share based on a 10-year discounted cash flow (DCF) analysis. At the current price of $38.90, the stock appears undervalued relative to its projected cash flow fundamentals. This estimate assumes a 6.60% long-term growth rate and a 10.00% discount rate (calculated: 7.71%), reflecting expected future free cash flow and cost of capital.

Valuation Details

$140.88
▲ 262.16% upside
20% margin of safety: $112.70
Years: 10Growth Rate: 6.60%
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Capital Efficiency

Average Quarterly ROIC
9.93%
Cost of Capital (estimated)11%
Value StatusUnderperforming Capital

The company is earning below its required return. This may indicate inefficient use of capital or excess cash that isn't being reinvested.

Complete historical ROIC is available with
.

Fundamental Details

61/100
NeutralWeighted across 6 signals
DCF Discount
262.2% discount to price
100
FCF Yield
17.9% trailing FCF yield
100
ROIC vs WACC
ROIC 9.9% vs WACC 11.0% (0.9x)
45
Net Debt / FCF
Net cash position
100
Buybacks
Share count flat
50
FCF CAGR (5Y)
-6.1% 5Y FCF CAGR (adjusted)
0
Strengths: DCF Discount, FCF Yield. Concerns: FCF CAGR (5Y).

Narrative Details

55/100
Improving
Vs 6-Month Baseline:Above Avg (66th pct)Weighted across 3 recent drivers
Trend: StableConfidence: 61%Updated: 1h ago
Sources: 14 (12 News · 2 Analyst)
Drivers(last 30 days)
10 news sentiment+0.2
2 regulatory scrutiny+0.2
2 analyst reiterations0.0

Investment Coach

Updated 14h ago
BUYConfidence: 57%
Thesis
TriNet Group, Inc. is significantly undervalued with an estimated fair value 292% above its current price, supported by strong free cash flow yield and constructive fundamentals. Despite trailing returns relative to its cost of capital, the company's valuation presents a compelling buying opportunity.
Key Risk
The key risk is the company's return on invested capital remaining below its weighted average cost of capital, which could limit value creation.
Signals To Watch
  • Monitor whether valuation discount remains above 10%.
  • Track ROIC vs WACC spread for sustained improvement.
  • Follow narrative trend for meaningful shifts in the score direction.
Ask the Coach - Available with
Historical Growth Rates
Free Cash Flow- - -Trend CAGR: 6.60%5 Year CAGR: 5.36%

Free Cash Flow (in millions)

TTM202520242023202220212020201920182017201620152014201320122011
$335$300$357$620$618$258$582$516-$61$291$184$149$174$111$90$54

How Intrinziq Estimates Fair Value

Intrinziq estimates TriNet Group, Inc.'s intrinsic value using a discounted cash flow (DCF) model based on free cash flow trends and a market-based discount rate. The model projects future cash flows over ten years and discounts them using a market return assumption to estimate fair value.

TriNet Group, Inc.Industrials

TriNet Group, Inc. provides human resources (HR) solutions, payroll services, employee benefits, and employment risk mitigation services for small and midsize businesses in the United States. The company offers multi-state payroll processing and tax administration; employee benefits programs, including health insurance and retirement plans; workers compensation insurance and claims management; employment and benefits law compliance; and other HR related services. It serves clients in various industries, including technology, professional services, financial services, life sciences, not-for-profit, property management, retail, manufacturing, and hospitality. The company sells its solutions through its direct sales organization. TriNet Group, Inc. was incorporated in 1988 and is headquartered in Dublin, California.