Target Corp. (NYSE:TGT)

The financial ratios over the analyzed period exhibit several notable trends, reflecting changes in valuation metrics relative to earnings, operating profit, sales, and book value.

Price to Earnings (P/E) Ratio

The P/E ratio experienced fluctuations throughout the period. It started at 16.12 in early 2020, increased to a peak of 27.08 in early 2023, indicating a higher market valuation relative to earnings at that time. Subsequently, it declined sharply to 11.95 by early 2025, suggesting a significant reduction in investor valuation or an improvement in earnings. This volatility highlights shifts in market expectations or company profitability over the years.

Price to Operating Profit (P/OP) Ratio

A similar trend is observed in the P/OP ratio. The ratio rose from 11.35 in 2020 to 19.56 in 2023, implying that the market priced operating profits more expensively during this period. Following this peak, the ratio decreased to 8.78 by 2025, indicating either enhanced operating profitability or lowered market valuation. The pattern closely mirrors the P/E ratio movement, reinforcing insights about changing investor sentiment and profit performance.

Price to Sales (P/S) Ratio

The P/S ratio showed less volatility and a generally declining trajectory. Starting at 0.68 in 2020, it rose slightly to 0.95 in 2021 and remained relatively stable near that level in early 2022. However, it declined to 0.46 by 2025, marking a steady reduction in the price investors are willing to pay per unit of sales. This downward trend could reflect pressures on sales growth, market reassessment of revenue quality, or broader market conditions impacting sales valuation.

Price to Book Value (P/BV) Ratio

The P/BV ratio increased from 4.47 in 2020 to a peak of 7.79 in 2022, suggesting rising market valuation compared to the company’s net asset book value. After peaking, it decreased notably to 3.33 by 2025. This decline could indicate a correction in market expectations, an increase in book value, or reduced investor confidence. The relatively high initial ratios followed by a pronounced drop reflect changing perceptions of the company’s asset valuation and potential risks.

Overall, the financial ratios demonstrate a cycle of increasing valuation multiples up to approximately 2022–2023, followed by marked decreases by 2025. This pattern suggests that the market initially priced the company at a premium relative to earnings, operating profit, and book value, potentially reflecting growth expectations or industry trends. The subsequent decline across all metrics indicates a shift towards more conservative valuations, which could be driven by changes in company performance, market conditions, or investor sentiment.

Share Price

The share price exhibited significant volatility over the period analyzed. From February 2020 to January 2022, there was a notable upward trend, rising from $105.58 to a peak of $216. However, this was followed by a sharp decline in January 2023 to $163.51. The price then stabilized somewhat, fluctuating slightly in early 2024 before dropping considerably to $107.28 by February 2025, nearly returning to the initial level observed in 2020.

Earnings per Share (EPS)

EPS showed a general upward trend initially, increasing from $6.55 in February 2020 to a high of $15.02 in January 2022. This was followed by a significant decrease to $6.04 in January 2023, suggesting a period of lower profitability or one-off expenses. From 2023 onward, EPS recovered moderately to levels around $8.96 to $8.98 by 2024 and 2025 respectively, indicating some stabilization in earnings.

Price-to-Earnings (P/E) Ratio

The P/E ratio fluctuated considerably throughout the timeframe. After starting at 16.12 in 2020, it increased to 20.39 in 2021, reflecting both rising share price and EPS. It then dropped to 14.38 in 2022 before sharply increasing to 27.08 in 2023, despite the drop in EPS and share price, indicating that investors might have anticipated future growth or considered the company undervalued at that time. Subsequently, the ratio declined to 18.6 in 2024 and further to 11.95 in 2025, suggesting a return to more conservative valuation multiples or declining investor confidence.

Share Price Trend

The share price exhibited significant growth from February 2020 to January 2022, increasing from 105.58 US$ to a peak of 216 US$. However, following this peak, the price displayed a downward trajectory, declining to 163.51 US$ in January 2023 and hovering around the mid-160s in February 2024. A notable decrease occurred by February 2025, with the share price dropping substantially to 107.28 US$.

Operating Profit per Share Trend

Operating profit per share improved steadily from 9.3 US$ in February 2020 to a high of 19.35 US$ in January 2022. Thereafter, it declined sharply to 8.36 US$ in January 2023 but partially recovered in the subsequent years, reaching 12.36 US$ by February 2024 and maintaining a close level of 12.22 US$ in February 2025.

Price to Operating Profit Ratio (P/OP) Trend

The P/OP ratio remained relatively stable from 2020 to 2022, fluctuating between approximately 11 and 14. A sharp increase was evident in January 2023 when the ratio rose to 19.56, indicating that the share price was valued significantly higher relative to operating profit per share. This ratio then decreased notably over the following two years, reaching a low of 8.78 by February 2025, suggesting a more favorable valuation relative to operating profit at that time.

Overall Insights

The data reveals an initial period of strong growth in both market valuation and operating profitability up to early 2022. The subsequent years witnessed a contraction in operating profit alongside a volatile share price, culminating in a separation between price and profitability as reflected by the peak in the P/OP ratio during January 2023. The more recent period indicates stabilization and a realignment towards more balanced valuation metrics, though at lower absolute share prices and profit levels compared to the peak period.

Analysis of the financial data reveals several noteworthy trends over the periods from February 2020 through February 2025.

Share Price

The share price experienced considerable volatility throughout the analyzed period. Starting at $105.58 in early 2020, it rose sharply to a peak of $216 by early 2022. Following this peak, the price declined notably to $163.51 by early 2023 and remained relatively stable around $166.67 in early 2024 before dropping significantly to $107.28 by early 2025. This overall movement indicates a period of significant investor enthusiasm followed by a phase of substantial correction or decreased market confidence.

Sales per Share

Sales per share demonstrated consistent growth over the timeframe. From $155.92 in early 2020, sales rose steadily to $229.24 by early 2022, with continued moderate increases to reach $237.03 by early 2023. Although there was a slight dip to $232.65 in early 2024, this was followed by a minor recovery to $233.91 in early 2025. The overall pattern suggests sustained operational performance and revenue growth per share, with minor fluctuations likely reflective of market or economic conditions.

Price-to-Sales Ratio (P/S)

The P/S ratio exhibited a general decline over the period. It began at 0.68 in early 2020 and increased to nearly 0.95 by early 2021 and stayed around 0.94 in early 2022, coinciding with the peak in share price. Afterward, the ratio decreased to 0.69 in early 2023 and remained close to this range at 0.72 in early 2024 before falling sharply to 0.46 in early 2025. This downward trend suggests that despite stable or slightly increasing sales per share, the market valuation relative to sales diminished considerably, indicating a potential reduction in investor valuation multiples or changing market sentiment.

Share Price Trend

The share price exhibited significant fluctuations over the analyzed period. It increased sharply from $105.58 to a peak of $216 by January 29, 2022, followed by a decline to $163.51 by January 28, 2023. After a brief rebound to $166.67 in February 2024, the price dropped substantially to $107.28 by February 2025, nearing the initial level observed at the start of the period.

Book Value per Share (BVPS) Trend

The book value per share demonstrated a generally upward trajectory with some variability. BVPS increased from $23.62 in February 2020 to $28.96 in January 2021, then slightly declined to $27.74 by January 2022. It further decreased to $24.40 by January 2023 before rising again to $29.09 in February 2024 and reaching its highest value of $32.19 by February 2025.

Price-to-Book Value (P/BV) Ratio Trend

The P/BV ratio showed a rising trend during the first half of the period, moving from 4.47 in February 2020 to a maximum of 7.79 in January 2022, indicating increasingly high market valuations relative to book value. This ratio then declined steadily to 6.7 in January 2023, 5.73 in February 2024, and further down to 3.33 by February 2025, which suggests a market revaluation towards a more conservative pricing relative to the book value.

Overall Insights

The data suggest that the company experienced a period of strong market optimism culminating in a peak share price and elevated P/BV ratio by early 2022. However, subsequent years saw a correction in market valuation driving both share price and P/BV ratio downward. Meanwhile, book value per share improved gradually toward the end, indicating strengthening underlying equity value despite the erosion in market price. The sharp decrease in the P/BV ratio to near historical lows by 2025 reveals a significant shift in investor sentiment or market conditions.