Target Corp., FCFF calculation

USD $ in millions

	12 months ended	Feb 2, 2019	Feb 3, 2018	Jan 28, 2017	Jan 30, 2016	Jan 31, 2015	Feb 1, 2014
	Net earnings (loss)
	Net noncash charges
	Changes in operating accounts
	Cash provided by operations
	Interest paid, net of capitalized interest, net of tax¹
	Expenditures for property and equipment
	Proceeds from disposal of property and equipment
	Leased assets obtained in exchange for new finance lease liabilities
	Free cash flow to the firm (FCFF)

Item	Description	The company
FCFF	Free cash flow to the firm is the cash flow available to the Target Corp.’s suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made.	Target Corp.’s FCFF increased from 2017 to 2018 but then declined significantly from 2018 to 2019.

Target Corp., interest paid, net of tax calculation

USD $ in millions

	12 months ended	Feb 2, 2019	Feb 3, 2018	Jan 28, 2017	Jan 30, 2016	Jan 31, 2015	Feb 1, 2014
	Effective Income Tax Rate (EITR)

	EITR¹
	Interest Paid, Net of Tax
	Interest paid, net of capitalized interest, before tax
	Less: Interest paid, net of capitalized interest, tax²
	Interest paid, net of capitalized interest, net of tax

2019 Calculations

² Interest paid, net of capitalized interest, tax = Interest paid, net of capitalized interest × EITR
= hidden × hidden = hidden

Target Corp., current EV/FCFF calculation, comparison to benchmarks

Selected Financial Data (USD $ in millions)
Enterprise value (EV)
Free cash flow to the firm (FCFF)
Ratio
EV/FCFF
Benchmarks
EV/FCFF, Competitors
Amazon.com Inc.
Costco Wholesale Corp.
eBay Inc.
Home Depot Inc.
Lowe’s Cos. Inc.
Netflix Inc.
TJX Cos. Inc.
Walmart Inc.
EV/FCFF, Sector
General Retailers
EV/FCFF, Industry
Consumer Services

If company EV/FCFF is lower then the EV/FCFF of benchmark then company is relatively undervalued.

Otherwise, if company EV/FCFF is higher then the EV/FCFF of benchmark then company is relatively overvalued.

Target Corp., historical EV/FCFF calculation, comparison to benchmarks

		Feb 2, 2019	Feb 3, 2018	Jan 28, 2017	Jan 30, 2016	Jan 31, 2015	Feb 1, 2014
	Selected Financial Data (USD $ in millions)
	Enterprise value (EV)¹
	Free cash flow to the firm (FCFF)²
	Ratio
	EV/FCFF³
	Benchmarks
	EV/FCFF, Competitors
	Amazon.com Inc.
	Costco Wholesale Corp.
	eBay Inc.
	Home Depot Inc.
	Lowe’s Cos. Inc.
	Netflix Inc.
	TJX Cos. Inc.
	Walmart Inc.
	EV/FCFF, Sector
	General Retailers
	EV/FCFF, Industry
	Consumer Services

2019 Calculations

³ EV/FCFF = EV ÷ FCFF
= hidden ÷ hidden = hidden

Ratio	Description	The company
EV/FCFF	Enterprise value to free cash flow to the firm is whole company valuation indicator.	Target Corp.’s EV/FCFF ratio increased from 2017 to 2018 and from 2018 to 2019.

	Target Corp.	Other companies (not purchased previously)
Financial Statements
Common-Size Financial Statements
Ratios
Relative Valuation
Discounted Cash Flow (DCF) Valuation
Long-term Trends
Analysis
Financial Reporting Quality

	All companies
Financial Statements
Common-Size Financial Statements
Ratios
Relative Valuation
Discounted Cash Flow (DCF) Valuation
Long-term Trends
Analysis
Financial Reporting Quality

Target Corp. (TGT)

Enterprise Value to FCFF (EV/FCFF)