Stock Analysis on Net

Target Corp. (NYSE:TGT)

Common Stock Valuation Ratios (Price Multiples) 

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Current Valuation Ratios

Target Corp., current price multiples

Microsoft Excel LibreOffice Calc
Target Corp. Amazon.com Inc. Booking Holdings Inc. GameStop Corp. Home Depot Inc. Lowe’s Cos. Inc. Retailing Consumer Discretionary
Selected Financial Data
Current share price (P) $166.97
No. shares of common stock outstanding 463,696,413
Growth rate (g) 16.18%
 
Earnings per share (EPS) $14.98
Next year expected EPS $17.40
Operating profit per share $19.29
Sales per share $225.60
Book value per share (BVPS) $27.66
Valuation Ratios (Price Multiples)
Price to earnings (P/E) 11.15 42.57 66.66 19.51 15.28 35.52 35.93
Price to next year expected earnings 9.59 35.03 50.70 5.88 7.31 27.77 30.69
Price-earnings-growth (PEG) 0.69 1.98 2.12 0.08 0.14 1.27 2.10
Price to operating profit (P/OP) 8.65 57.09 31.11 13.92 10.67 33.09 36.52
Price to sales (P/S) 0.74 3.02 7.09 2.20 2.12 1.34 2.55 2.97
Price to book value (P/BV) 6.04 10.27 12.57 8.26 12.43 11.16

Based on: 10-K (reporting date: 2022-01-29).

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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Jan 29, 2022 Jan 30, 2021 Feb 1, 2020 Feb 2, 2019 Feb 3, 2018 Jan 28, 2017
Price to earnings (P/E) 14.38 20.39 16.12 13.56 12.97 11.11
Price to operating profit (P/OP) 11.17 13.62 11.35 9.69 8.83 6.12
Price to sales (P/S) 0.95 0.96 0.69 0.53 0.53 0.44
Price to book value (P/BV) 7.79 6.17 4.47 3.52 3.25 2.78

Based on: 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).

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 2020 to 2021 but then decreased significantly from 2021 to 2022.
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 2020 to 2021 but then decreased significantly from 2021 to 2022.
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 increased from 2020 to 2021 but then slightly decreased from 2021 to 2022.
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 increased from 2020 to 2021 and from 2021 to 2022.

Price to Earnings (P/E)

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

Microsoft Excel LibreOffice Calc
Jan 29, 2022 Jan 30, 2021 Feb 1, 2020 Feb 2, 2019 Feb 3, 2018 Jan 28, 2017
No. shares of common stock outstanding1 462,418,075 498,616,180 500,961,951 516,333,213 538,796,010 552,675,341
Selected Financial Data (US$)
Net earnings (in millions) 6,946  4,368  3,281  2,937  2,934  2,737 
Earnings per share (EPS)2 15.02 8.76 6.55 5.69 5.45 4.95
Share price1, 3 216.00 178.58 105.58 77.12 70.65 55.02
Valuation Ratio
P/E ratio4 14.38 20.39 16.12 13.56 12.97 11.11
Benchmarks
P/E Ratio, Competitors5
Amazon.com Inc. 48.08 78.20 86.30 79.30 228.25
Booking Holdings Inc. 86.68 1,696.44 14.16 21.46 39.30
GameStop Corp. 37.59 5.97
Home Depot Inc. 19.94 24.51 17.38 18.87 23.51 22.37
Lowe’s Cos. Inc. 17.84 22.36 11.96 37.80 20.26 22.62
P/E Ratio, Sector
Retailing 39.26 52.06 43.76 41.10 54.56
P/E Ratio, Industry
Consumer Discretionary 39.81 79.85 37.77 31.29 43.80

Based on: 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).

1 Data adjusted for splits and stock dividends.

2 2022 Calculation
EPS = Net earnings ÷ No. shares of common stock outstanding
= 6,946,000,000 ÷ 462,418,075 = 15.02

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

4 2022 Calculation
P/E ratio = Share price ÷ EPS
= 216.00 ÷ 15.02 = 14.38

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 2020 to 2021 but then decreased significantly from 2021 to 2022.

Price to Operating Profit (P/OP)

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

Microsoft Excel LibreOffice Calc
Jan 29, 2022 Jan 30, 2021 Feb 1, 2020 Feb 2, 2019 Feb 3, 2018 Jan 28, 2017
No. shares of common stock outstanding1 462,418,075 498,616,180 500,961,951 516,333,213 538,796,010 552,675,341
Selected Financial Data (US$)
Operating income (in millions) 8,946  6,539  4,658  4,110  4,312  4,969 
Operating profit per share2 19.35 13.11 9.30 7.96 8.00 8.99
Share price1, 3 216.00 178.58 105.58 77.12 70.65 55.02
Valuation Ratio
P/OP ratio4 11.17 13.62 11.35 9.69 8.83 6.12
Benchmarks
P/OP Ratio, Competitors5
Amazon.com Inc. 64.48 72.85 68.77 64.31 168.60
Booking Holdings Inc. 40.46 12.89 16.06 20.27
GameStop Corp. 9.62 3.78
Home Depot Inc. 14.22 17.25 12.33 13.51 13.82 13.26
Lowe’s Cos. Inc. 12.45 13.52 8.11 21.77 10.61 11.97
P/OP Ratio, Sector
Retailing 36.57 42.48 32.84 27.52 31.84
P/OP Ratio, Industry
Consumer Discretionary 40.47 61.80 29.43 24.28 23.36

Based on: 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).

1 Data adjusted for splits and stock dividends.

2 2022 Calculation
Operating profit per share = Operating income ÷ No. shares of common stock outstanding
= 8,946,000,000 ÷ 462,418,075 = 19.35

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

4 2022 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 216.00 ÷ 19.35 = 11.17

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 2020 to 2021 but then decreased significantly from 2021 to 2022.

Price to Sales (P/S)

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

Microsoft Excel LibreOffice Calc
Jan 29, 2022 Jan 30, 2021 Feb 1, 2020 Feb 2, 2019 Feb 3, 2018 Jan 28, 2017
No. shares of common stock outstanding1 462,418,075 498,616,180 500,961,951 516,333,213 538,796,010 552,675,341
Selected Financial Data (US$)
Sales (in millions) 104,611  92,400  77,130  74,433  71,879  69,495 
Sales per share2 226.23 185.31 153.96 144.16 133.41 125.74
Share price1, 3 216.00 178.58 105.58 77.12 70.65 55.02
Valuation Ratio
P/S ratio4 0.95 0.96 0.69 0.53 0.53 0.44
Benchmarks
P/S Ratio, Competitors5
Amazon.com Inc. 3.41 4.32 3.56 3.43 3.89
Booking Holdings Inc. 9.22 14.73 4.57 5.91 7.25
GameStop Corp. 1.11 2.50 0.04 0.12 0.14 0.25
Home Depot Inc. 2.17 2.39 1.77 1.94 2.01 1.88
Lowe’s Cos. Inc. 1.56 1.46 0.71 1.23 1.02 1.08
P/S Ratio, Sector
Retailing 2.82 3.14 2.52 2.40 2.49
P/S Ratio, Industry
Consumer Discretionary 3.29 3.46 2.16 1.92 1.94

Based on: 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).

1 Data adjusted for splits and stock dividends.

2 2022 Calculation
Sales per share = Sales ÷ No. shares of common stock outstanding
= 104,611,000,000 ÷ 462,418,075 = 226.23

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

4 2022 Calculation
P/S ratio = Share price ÷ Sales per share
= 216.00 ÷ 226.23 = 0.95

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 increased from 2020 to 2021 but then slightly decreased from 2021 to 2022.

Price to Book Value (P/BV)

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

Microsoft Excel LibreOffice Calc
Jan 29, 2022 Jan 30, 2021 Feb 1, 2020 Feb 2, 2019 Feb 3, 2018 Jan 28, 2017
No. shares of common stock outstanding1 462,418,075 498,616,180 500,961,951 516,333,213 538,796,010 552,675,341
Selected Financial Data (US$)
Shareholders’ investment (in millions) 12,827  14,440  11,833  11,297  11,709  10,953 
Book value per share (BVPS)2 27.74 28.96 23.62 21.88 21.73 19.82
Share price1, 3 216.00 178.58 105.58 77.12 70.65 55.02
Valuation Ratio
P/BV ratio4 7.79 6.17 4.47 3.52 3.25 2.78
Benchmarks
P/BV Ratio, Competitors5
Amazon.com Inc. 11.60 17.86 16.11 18.34 24.98
Booking Holdings Inc. 16.35 20.46 11.61 9.77 8.17
GameStop Corp. 4.18 29.11 0.45 0.77 0.59 0.94
Home Depot Inc. 95.58 139.52 41.08
Lowe’s Cos. Inc. 90.79 25.96 24.01 11.89 10.87
P/BV Ratio, Sector
Retailing 13.73 18.87 17.08 16.26 16.92
P/BV Ratio, Industry
Consumer Discretionary 12.37 15.70 11.20 9.48 9.01

Based on: 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).

1 Data adjusted for splits and stock dividends.

2 2022 Calculation
BVPS = Shareholders’ investment ÷ No. shares of common stock outstanding
= 12,827,000,000 ÷ 462,418,075 = 27.74

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

4 2022 Calculation
P/BV ratio = Share price ÷ BVPS
= 216.00 ÷ 27.74 = 7.79

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 increased from 2020 to 2021 and from 2021 to 2022.