TW TW

Name: TW Crucible Score
Creator: Kaladin Capital Intelligence

UnknownUnknownN/A📅 Scored April 7, 2026

Price at analysis: $125.08

Crucible Score

66.4

B-

Quality × Value Composite

KQI — Quality

72.0

Fundamental Quality Index

KVI — Value

59.5

Valuation Attractiveness Index

Crucible Verdict — TW

Tradeweb Markets (TW) presents a quality-value disconnect with strong fundamentals but weak diversification dragging down its score. The electronic trading platform shows impressive financial health (82) and growth prospects (81), yet trades at a 12% discount to fair value despite solid execution. TW's concentrated business model remains the primary risk to monitor as fixed income markets evolve.

— Kal, Kaladin Capital Intelligence

◆ KQI Quality Dimensions

Financial Quality

81.7

Growth Profile

81.2

Moat Durability⚠

72.1

Management Effectiveness⚠

64.2

Diversification & Resilience⚠

51.0

Market Position

64.0

Weakest dimension: Diversification & Resilience (51.0)

◆ KVI Value Dimensions

DCF Margin of Safety

63.3

FCF Yield & Cash Returns

37.0

Relative Valuation

53.1

Growth-Adjusted Value

77.8

Historical Valuation

84.0

Macro Context

45.6

◆ DCF Valuation Scenarios

Bear Case

$95.42

Base Case

$139.56

Bull Case

$196.83

Price at Analysis

$125.08

Scenario	Fair Value	Rev CAGR (5yr)	Terminal Margin	WACC
🔴 Bear	$95.42	8.0%	38.0%	9.2%
🟢 Base	$139.56	12.0%	42.0%	8.7%
🟢 Bull	$196.83	15.0%	46.0%	8.2%

Key Assumptions: TW has demonstrated strong revenue growth (~17.5% 5-year CAGR) with expanding operating margins from 33.3% to 40.3%, reflecting operating leverage in its electronic trading platform. WACC derived using CAPM with 4.35% risk-free rate, 0.78 beta, and 5.5% ERP yielding ~8.64% cost of equity; minimal debt results in WACC near cost of equity. FCF conversion is exceptionally high (~55% of revenue) given the asset-light model with capex intensity around 2-3% of revenue, supporting premium valuations across scenarios.

◆ Financial Snapshot

Profitability

Gross Margin72.1%

Operating Margin41.1%

Net Margin39.6%

ROIC8.8%

ROE6.7%

Balance Sheet

Balance SheetCR: 4.94

Cash ConversionFCF/EPS: 1.37x

Capital IntensityCapex/Rev: 2.0%

Altman Z-Score17.08 (Safe)

Piotroski F-Score7/9 (Good)

Growth

Revenue CAGR17.5% CAGR

Earnings CAGR37.6% CAGR

Growth ConsistencyCV: 0.47

Segment Breadth4/4 growing (100%)

Quarterly TrendRev↘+13%, Margin↑, WC↓, Exp↓

Earnings CredibilityTends to Beat

◆ Analyst Consensus & Leadership

Leadership & Governance

CEO Ownership< 1%

Insider ActivitySelling

Capital AllocationROIC 8.8% vs WACC 0.6%

Earnings Beat Rate62% (12/22)

◆ Related Companies in Our Universe

Other Unknown companies scored by the Crucible:

ADBE81.8A-NICE80.7A-DECK79.9A-INTU79.9A-EXEL78.3A-MTCH78.2A-TTD78.0B+

Methodology All Scores Crucible Briefs Performance @KaladinCI

Analysis conducted April 7, 2026 based on most recent SEC filings. Updated quarterly, after new SEC filings.

Point-in-time fundamental analysis. Not investment advice. Scores reflect company quality and valuation at time of analysis and may not reflect current market conditions.