Price to Operating Profit (P/OP)
since 2005
Calculation
Target Corp., P/OP, long-term trends, calculation
| P/OP | = | Share price1, 2, 3 | ÷ | Operating profit per share1 | Operating profit per share1 | = | Operating income1 (in millions) |
÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Mar 12, 2025 | 8.78 | = | 107.28 | ÷ | 12.22 | 12.22 | = | 5,566 | ÷ | 455,576,464 | |
| Mar 13, 2024 | 13.48 | = | 166.67 | ÷ | 12.36 | 12.36 | = | 5,707 | ÷ | 461,690,206 | |
| Mar 8, 2023 | 19.56 | = | 163.51 | ÷ | 8.36 | 8.36 | = | 3,848 | ÷ | 460,363,991 | |
| Mar 9, 2022 | 11.17 | = | 216.00 | ÷ | 19.35 | 19.35 | = | 8,946 | ÷ | 462,418,075 | |
| Mar 10, 2021 | 13.62 | = | 178.58 | ÷ | 13.11 | 13.11 | = | 6,539 | ÷ | 498,616,180 | |
| Mar 11, 2020 | 11.35 | = | 105.58 | ÷ | 9.30 | 9.30 | = | 4,658 | ÷ | 500,961,951 | |
| Mar 13, 2019 | 9.69 | = | 77.12 | ÷ | 7.96 | 7.96 | = | 4,110 | ÷ | 516,333,213 | |
| Mar 14, 2018 | 8.83 | = | 70.65 | ÷ | 8.00 | 8.00 | = | 4,312 | ÷ | 538,796,010 | |
| Mar 8, 2017 | 6.12 | = | 55.02 | ÷ | 8.99 | 8.99 | = | 4,969 | ÷ | 552,675,341 | |
| Mar 11, 2016 | 8.88 | = | 81.87 | ÷ | 9.22 | 9.22 | = | 5,530 | ÷ | 599,982,121 | |
| Mar 13, 2015 | 11.20 | = | 79.18 | ÷ | 7.07 | 7.07 | = | 4,535 | ÷ | 641,738,798 | |
| Mar 14, 2014 | 8.89 | = | 59.36 | ÷ | 6.68 | 6.68 | = | 4,229 | ÷ | 633,174,692 | |
| Mar 20, 2013 | 8.18 | = | 68.52 | ÷ | 8.37 | 8.37 | = | 5,371 | ÷ | 641,387,165 | |
| Mar 15, 2012 | 7.38 | = | 58.75 | ÷ | 7.96 | 7.96 | = | 5,322 | ÷ | 668,486,970 | |
| Mar 11, 2011 | 6.80 | = | 51.53 | ÷ | 7.58 | 7.58 | = | 5,252 | ÷ | 693,063,352 | |
| Mar 12, 2010 | 8.40 | = | 53.08 | ÷ | 6.32 | 6.32 | = | 4,673 | ÷ | 739,316,518 | |
| Mar 13, 2009 | 5.12 | = | 29.97 | ÷ | 5.85 | 5.85 | = | 4,402 | ÷ | 752,672,699 | |
| Mar 13, 2008 | 7.80 | = | 50.56 | ÷ | 6.48 | 6.48 | = | 5,272 | ÷ | 813,034,094 | |
| Mar 15, 2007 | 10.09 | = | 59.58 | ÷ | 5.90 | 5.90 | = | 5,069 | ÷ | 858,580,232 | |
| Apr 10, 2006 | 10.40 | = | 51.62 | ÷ | 4.96 | 4.96 | = | 4,323 | ÷ | 871,024,965 | |
| Apr 11, 2005 | 12.23 | = | 49.75 | ÷ | 4.07 | 4.07 | = | 3,601 | ÷ | 885,553,006 |
Based on: 10-K (reporting date: 2025-02-01), 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), 10-K (reporting date: 2018-02-03), 10-K (reporting date: 2017-01-28), 10-K (reporting date: 2016-01-30), 10-K (reporting date: 2015-01-31), 10-K (reporting date: 2014-02-01), 10-K (reporting date: 2013-02-02), 10-K (reporting date: 2012-01-28), 10-K (reporting date: 2011-01-29), 10-K (reporting date: 2010-01-30), 10-K (reporting date: 2009-01-31), 10-K (reporting date: 2008-02-02), 10-K (reporting date: 2007-02-03), 10-K (reporting date: 2006-01-28), 10-K (reporting date: 2005-01-29).
1 US$
2 Data adjusted for splits and stock dividends.
3 Closing price as at the filing date of Target Corp. Annual Report.
- Share Price Trend
- The share price exhibited notable volatility over the analyzed period. Initial values ranged near $50, followed by a decline to just under $30 around 2009, corresponding to the global financial crisis period. Post-crisis, the price generally trended upward, peaking around $216 in 2022 before experiencing a decline to approximately $107 by 2025. This pattern suggests sensitivity to broader economic cycles and potential company-specific factors influencing investor sentiment.
- Operating Profit Per Share Evolution
- Operating profit per share showed an overall increasing trend, rising from $4.07 in 2005 to a peak of $19.35 in 2022. There were fluctuations throughout the years, with occasional declines, notably after 2018, but the general trajectory indicates improving operational profitability. The sharp increase approaching 2022 reflects substantial growth in operational earnings before a decrease post-2022.
- Price to Operating Profit Ratio (P/OP)
- The P/OP ratio ranged from a low of approximately 5.12 (around 2009) to a high near 19.56 in 2023. The low ratio near 2009 coincides with a depressed share price during the economic downturn, showing that share prices were relatively undervalued compared to operating profits. Conversely, peaks in P/OP in the early 2020s suggest periods where share prices increased disproportionately relative to operating profit growth, potentially indicating market optimism or overvaluation.
- Overall Insights
- The data reveals a cyclical nature with performance dips aligning with economic downturns, such as 2009. Rising operating profits indicate successful operational improvements or growth initiatives over the longer term. However, the share price has experienced greater volatility, influenced by market conditions and investor expectations. The P/OP ratio's fluctuations highlight varying market valuations relative to underlying profit trends, with moments of both undervaluation and overvaluation evident.
Comparison to Competitors
Target Corp., P/OP, long-term trends, comparison to competitors
| Target Corp. | Costco Wholesale Corp. | Walmart Inc. | |
|---|---|---|---|
| Mar 12, 2025 | 8.78 | — | 23.31 |
| Mar 13, 2024 | 13.48 | 43.38 | 18.10 |
| Mar 8, 2023 | 19.56 | 30.86 | 18.40 |
| Mar 9, 2022 | 11.17 | 27.28 | 15.43 |
| Mar 10, 2021 | 13.62 | 29.60 | 16.46 |
| Mar 11, 2020 | 11.35 | 29.47 | 15.69 |
| Mar 13, 2019 | 9.69 | 27.62 | 12.70 |
| Mar 14, 2018 | 8.83 | 21.34 | 12.85 |
| Mar 8, 2017 | 6.12 | 16.75 | 9.61 |
| Mar 11, 2016 | 8.88 | 17.91 | 8.97 |
| Mar 13, 2015 | 11.20 | 18.09 | 9.59 |
| Mar 14, 2014 | 8.89 | 16.90 | 9.15 |
| Mar 20, 2013 | 8.18 | 16.80 | 8.85 |
| Mar 15, 2012 | 7.38 | 14.86 | 7.83 |
| Mar 11, 2011 | 6.80 | 14.53 | 7.16 |
| Mar 12, 2010 | 8.40 | 13.16 | 8.78 |
| Mar 13, 2009 | 5.12 | 14.35 | 9.07 |
| Mar 13, 2008 | 7.80 | 12.67 | 9.47 |
| Mar 15, 2007 | 10.09 | 17.49 | 9.56 |
| Apr 10, 2006 | 10.40 | 15.05 | 10.81 |
| Apr 11, 2005 | 12.23 | 16.03 | 12.41 |
Based on: 10-K (reporting date: 2025-02-01), 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), 10-K (reporting date: 2018-02-03), 10-K (reporting date: 2017-01-28), 10-K (reporting date: 2016-01-30), 10-K (reporting date: 2015-01-31), 10-K (reporting date: 2014-02-01), 10-K (reporting date: 2013-02-02), 10-K (reporting date: 2012-01-28), 10-K (reporting date: 2011-01-29), 10-K (reporting date: 2010-01-30), 10-K (reporting date: 2009-01-31), 10-K (reporting date: 2008-02-02), 10-K (reporting date: 2007-02-03), 10-K (reporting date: 2006-01-28), 10-K (reporting date: 2005-01-29).