Travel + Leisure (TNL) attracted market attention after posting third-quarter results that beat expectations, with gains across sales, revenue, and earnings per share. The company also raised its full-year guidance on Gross VOI sales.

See our latest analysis for Travel + Leisure.

Shares of Travel + Leisure have steadily gained momentum in 2025, with a year-to-date share price return of 25.6% and a standout 1-year total shareholder return of nearly 31%. Recent quarterly strength, including a higher earnings outlook and ongoing buybacks, has helped reinforce investor confidence and highlights the company’s solid long-term performance compared with the broader market.

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But with shares up strongly and analysts increasing their targets, investors may wonder whether Travel + Leisure’s impressive run still leaves upside on the table or if all the future growth is now fully reflected in the price.

With Travel + Leisure’s last close at $62.68, the most popular narrative puts fair value much higher and suggests there’s meaningful upside left in the shares.

The strong and growing pipeline of predictable, recurring revenue from owner upgrades, management fees, and financing activity (with 75% of revenue recurring), along with a $20 billion ten-year revenue pipeline, underpins dependable free cash flow generation and earnings stability for future periods.

Read the complete narrative.

Curious why the crowd believes the real value is well above today’s price? There is one number in their forecast that could surprise anyone who thinks the holiday boom is over. Get the full story and see what’s driving their big valuation leap. You might rethink what’s possible for Travel + Leisure.

Result: Fair Value of $73.18 (UNDERVALUED)

Have a read of the narrative in full and understand what’s behind the forecasts.

However, ongoing industry headwinds and heavy reliance on US vacation ownership could challenge Travel + Leisure’s growth story if market conditions shift unexpectedly.

Find out about the key risks to this Travel + Leisure narrative.

Feel like the consensus isn’t quite your style or want to dig into the numbers personally? You can craft your own viewpoint in just minutes, so why not Do it your way

A great starting point for your Travel + Leisure research is our analysis highlighting 4 key rewards and 3 important warning signs that could impact your investment decision.

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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.

Companies discussed in this article include TNL.

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