Stock Analysis on Net

Target Corp. (NYSE:TGT)

Common Stock Valuation Ratios (Price Multiples)

Microsoft Excel

Valuation ratios measure the quantity of an asset or flaw (e.g., earnings) associated with ownership of a specified claim (e.g., a share of ownership of the enterprise).


Current Valuation Ratios

Target Corp., current price multiples

Microsoft Excel
Target Corp. Costco Wholesale Corp. Walmart Inc. Consumer Staples Distribution & Retail Consumer Staples
Selected Financial Data
Current share price (P) $174.67
No. shares of common stock outstanding 461,690,206
Growth rate (g) 16.43%
 
Earnings per share (EPS) $8.96
Next year expected EPS $10.44
Operating profit per share $12.36
Sales per share $229.16
Book value per share (BVPS) $29.09
Valuation Ratios (Price Multiples)
Price to earnings (P/E) 19.49 51.60 31.54 43.11 31.29
Price to next year expected earnings 16.74 43.50 28.97 39.23 28.68
Price-earnings-growth (PEG) 1.19 2.77 3.55 4.36 3.43
Price to operating profit (P/OP) 14.13 40.01 18.11 27.62 23.62
Price to sales (P/S) 0.76 1.37 0.76 0.94 1.55
Price to book value (P/BV) 6.00 12.96 5.83 7.92 8.06

Based on: 10-K (reporting date: 2024-02-03).

If the company price multiple is lower then the price multiple of benchmark then company stock is relatively undervalued.
Otherwise, if the company price multiple is higher then the price multiple of benchmark then company stock is relatively overvalued.


Historical Valuation Ratios (Summary)

Target Corp., historical price multiples

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Feb 3, 2024 Jan 28, 2023 Jan 29, 2022 Jan 30, 2021 Feb 1, 2020 Feb 2, 2019
Price to earnings (P/E) 18.60 27.08 14.38 20.39 16.12 13.56
Price to operating profit (P/OP) 13.48 19.56 11.17 13.62 11.35 9.69
Price to sales (P/S) 0.73 0.70 0.95 0.96 0.69 0.53
Price to book value (P/BV) 5.73 6.70 7.79 6.17 4.47 3.52

Based on: 10-K (reporting date: 2024-02-03), 10-K (reporting date: 2023-01-28), 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01), 10-K (reporting date: 2019-02-02).

Valuation ratio Description The company
P/E ratio The P/E ratio tells analyst how much an investor in common stock pays per dollar of current earnings. Target Corp. P/E ratio increased from 2022 to 2023 but then slightly decreased from 2023 to 2024 not reaching 2022 level.
P/OP ratio Because P/E ratio is calculated using net income, the ratio can be sensitive to nonrecurring earnings and capital structure, analysts may use price to operating profit. Target Corp. P/OP ratio increased from 2022 to 2023 but then slightly decreased from 2023 to 2024 not reaching 2022 level.
P/S ratio An rationale for the P/S ratio is that sales, as the top line in an income statement, are generally less subject to distortion or manipulation than other fundamentals such as EPS or book value. Sales are also more stable than earnings and never negative. Target Corp. P/S ratio decreased from 2022 to 2023 but then slightly increased from 2023 to 2024.
P/BV ratio The P/BV ratio is interpreted as an indicator of market judgment about the relationship between a company required rate of return and its actual rate of return. Target Corp. P/BV ratio decreased from 2022 to 2023 and from 2023 to 2024.

Price to Earnings (P/E)

Target Corp., historical P/E calculation, comparison to benchmarks

Microsoft Excel
Feb 3, 2024 Jan 28, 2023 Jan 29, 2022 Jan 30, 2021 Feb 1, 2020 Feb 2, 2019
No. shares of common stock outstanding1 461,690,206 460,363,991 462,418,075 498,616,180 500,961,951 516,333,213
Selected Financial Data (US$)
Net earnings (in millions) 4,138 2,780 6,946 4,368 3,281 2,937
Earnings per share (EPS)2 8.96 6.04 15.02 8.76 6.55 5.69
Share price1, 3 166.67 163.51 216.00 178.58 105.58 77.12
Valuation Ratio
P/E ratio4 18.60 27.08 14.38 20.39 16.12 13.56
Benchmarks
P/E Ratio, Competitors5
Costco Wholesale Corp. 39.79 36.38 39.65 40.02 35.76
Walmart Inc. 31.52 32.17 29.27 27.47 21.69 41.79
P/E Ratio, Sector
Consumer Staples Distribution & Retail 33.80 26.93 28.78 24.18 33.88
P/E Ratio, Industry
Consumer Staples 27.78 26.49 27.26 25.26 34.44

Based on: 10-K (reporting date: 2024-02-03), 10-K (reporting date: 2023-01-28), 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01), 10-K (reporting date: 2019-02-02).

1 Data adjusted for splits and stock dividends.

2 2024 Calculation
EPS = Net earnings ÷ No. shares of common stock outstanding
= 4,138,000,000 ÷ 461,690,206 = 8.96

3 Closing price as at the filing date of Target Corp. Annual Report.

4 2024 Calculation
P/E ratio = Share price ÷ EPS
= 166.67 ÷ 8.96 = 18.60

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/E ratio The P/E ratio tells analyst how much an investor in common stock pays per dollar of current earnings. Target Corp. P/E ratio increased from 2022 to 2023 but then slightly decreased from 2023 to 2024 not reaching 2022 level.

Price to Operating Profit (P/OP)

Target Corp., historical P/OP calculation, comparison to benchmarks

Microsoft Excel
Feb 3, 2024 Jan 28, 2023 Jan 29, 2022 Jan 30, 2021 Feb 1, 2020 Feb 2, 2019
No. shares of common stock outstanding1 461,690,206 460,363,991 462,418,075 498,616,180 500,961,951 516,333,213
Selected Financial Data (US$)
Operating income (in millions) 5,707 3,848 8,946 6,539 4,658 4,110
Operating profit per share2 12.36 8.36 19.35 13.11 9.30 7.96
Share price1, 3 166.67 163.51 216.00 178.58 105.58 77.12
Valuation Ratio
P/OP ratio4 13.48 19.56 11.17 13.62 11.35 9.69
Benchmarks
P/OP Ratio, Competitors5
Costco Wholesale Corp. 30.86 27.28 29.60 29.47 27.62
Walmart Inc. 18.10 18.40 15.43 16.46 15.69 12.70
P/OP Ratio, Sector
Consumer Staples Distribution & Retail 21.66 16.70 18.40 17.48 14.59
P/OP Ratio, Industry
Consumer Staples 20.97 19.03 20.00 19.45 21.06

Based on: 10-K (reporting date: 2024-02-03), 10-K (reporting date: 2023-01-28), 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01), 10-K (reporting date: 2019-02-02).

1 Data adjusted for splits and stock dividends.

2 2024 Calculation
Operating profit per share = Operating income ÷ No. shares of common stock outstanding
= 5,707,000,000 ÷ 461,690,206 = 12.36

3 Closing price as at the filing date of Target Corp. Annual Report.

4 2024 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 166.67 ÷ 12.36 = 13.48

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/OP ratio Because P/E ratio is calculated using net income, the ratio can be sensitive to nonrecurring earnings and capital structure, analysts may use price to operating profit. Target Corp. P/OP ratio increased from 2022 to 2023 but then slightly decreased from 2023 to 2024 not reaching 2022 level.

Price to Sales (P/S)

Target Corp., historical P/S calculation, comparison to benchmarks

Microsoft Excel
Feb 3, 2024 Jan 28, 2023 Jan 29, 2022 Jan 30, 2021 Feb 1, 2020 Feb 2, 2019
No. shares of common stock outstanding1 461,690,206 460,363,991 462,418,075 498,616,180 500,961,951 516,333,213
Selected Financial Data (US$)
Sales (in millions) 105,803 107,588 104,611 92,400 77,130 74,433
Sales per share2 229.16 233.70 226.23 185.31 153.96 144.16
Share price1, 3 166.67 163.51 216.00 178.58 105.58 77.12
Valuation Ratio
P/S ratio4 0.73 0.70 0.95 0.96 0.69 0.53
Benchmarks
P/S Ratio, Competitors5
Costco Wholesale Corp. 1.05 0.95 1.03 0.98 0.88
Walmart Inc. 0.76 0.62 0.70 0.67 0.62 0.55
P/S Ratio, Sector
Consumer Staples Distribution & Retail 0.74 0.80 0.78 0.70 0.61
P/S Ratio, Industry
Consumer Staples 1.38 1.45 1.50 1.40 1.37

Based on: 10-K (reporting date: 2024-02-03), 10-K (reporting date: 2023-01-28), 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01), 10-K (reporting date: 2019-02-02).

1 Data adjusted for splits and stock dividends.

2 2024 Calculation
Sales per share = Sales ÷ No. shares of common stock outstanding
= 105,803,000,000 ÷ 461,690,206 = 229.16

3 Closing price as at the filing date of Target Corp. Annual Report.

4 2024 Calculation
P/S ratio = Share price ÷ Sales per share
= 166.67 ÷ 229.16 = 0.73

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/S ratio An rationale for the P/S ratio is that sales, as the top line in an income statement, are generally less subject to distortion or manipulation than other fundamentals such as EPS or book value. Sales are also more stable than earnings and never negative. Target Corp. P/S ratio decreased from 2022 to 2023 but then slightly increased from 2023 to 2024.

Price to Book Value (P/BV)

Target Corp., historical P/BV calculation, comparison to benchmarks

Microsoft Excel
Feb 3, 2024 Jan 28, 2023 Jan 29, 2022 Jan 30, 2021 Feb 1, 2020 Feb 2, 2019
No. shares of common stock outstanding1 461,690,206 460,363,991 462,418,075 498,616,180 500,961,951 516,333,213
Selected Financial Data (US$)
Shareholders’ investment (in millions) 13,432 11,232 12,827 14,440 11,833 11,297
Book value per share (BVPS)2 29.09 24.40 27.74 28.96 23.62 21.88
Share price1, 3 166.67 163.51 216.00 178.58 105.58 77.12
Valuation Ratio
P/BV ratio4 5.73 6.70 7.79 6.17 4.47 3.52
Benchmarks
P/BV Ratio, Competitors5
Costco Wholesale Corp. 9.99 10.30 11.30 8.76 8.58
Walmart Inc. 5.83 4.90 4.81 4.59 4.32 3.85
P/BV Ratio, Sector
Consumer Staples Distribution & Retail 6.21 6.11 5.83 5.11 4.54
P/BV Ratio, Industry
Consumer Staples 7.15 7.11 7.05 6.37 6.15

Based on: 10-K (reporting date: 2024-02-03), 10-K (reporting date: 2023-01-28), 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01), 10-K (reporting date: 2019-02-02).

1 Data adjusted for splits and stock dividends.

2 2024 Calculation
BVPS = Shareholders’ investment ÷ No. shares of common stock outstanding
= 13,432,000,000 ÷ 461,690,206 = 29.09

3 Closing price as at the filing date of Target Corp. Annual Report.

4 2024 Calculation
P/BV ratio = Share price ÷ BVPS
= 166.67 ÷ 29.09 = 5.73

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/BV ratio The P/BV ratio is interpreted as an indicator of market judgment about the relationship between a company required rate of return and its actual rate of return. Target Corp. P/BV ratio decreased from 2022 to 2023 and from 2023 to 2024.