Target Corp. (NYSE:TGT)

Price to Earnings (P/E) Ratio

The P/E ratio demonstrates general volatility over the examined periods, initially declining from 22.08 to a low of 13.23 around mid-2022. A subsequent rebound raises the ratio to a peak of 27.08 in early 2023, followed by a gradual decline to approximately 10.81 by late 2025. This pattern suggests fluctuations in investor expectations or earnings performance, with a notable peak indicating a period of higher market valuation relative to earnings before a sustained decrease.

Price to Operating Profit (P/OP) Ratio

The P/OP ratio shows a trajectory similar to the P/E ratio but with lower multiples overall. Starting around 15.33, it declines steadily to 9.79 by early 2022, then surges sharply to 19.56 in early 2023. After this peak, the ratio falls consistently to below 8 by late 2025. This indicates that market pricing relative to operating profit experienced a significant increase followed by a considerable reduction, reflecting possible changes in operating profitability or market sentiment towards operational performance.

Price to Sales (P/S) Ratio

The P/S ratio trends upward from 0.76 in mid-2020 to a high of 1.21 around mid-2021, indicating increasing market valuation relative to sales during that period. Subsequently, it declines steadily to about 0.39 by late 2025. This consistent downward trend after the peak suggests either declining sales valuations or rising sales compared to market capitalization, implying adjustments in how the market values the company’s revenue generation over time.

Price to Book Value (P/BV) Ratio

The P/BV ratio increased from 5.48 in mid-2020 to a peak near 8.63 in late 2021, suggesting stronger market optimism about the company's net asset value. Following this peak, the ratio decreases steadily, reaching around 2.62 by late 2025. This decline indicates diminishing market premium over book value, potentially due to changes in asset valuation, equity performance, or investor perception of the company's fundamental worth.

Overall, the financial ratios reflect significant fluctuations in market valuation metrics over the timeframe, with peaks generally observed around late 2021 to early 2023, followed by downward trends through to late 2025. These patterns suggest a cycle of increased market optimism and valuation followed by correction or moderation, affecting earnings, operating profit, sales, and book value relative pricing metrics.

The analysis of the financial indicators over the presented periods reveals several noteworthy trends and shifts.

Share Price

The share price exhibited a rising trend initially, increasing from $122.33 to a peak around $249.18 between May 2020 and July 2021. Following this peak, the price displayed volatility and an overall downward trajectory, falling to a low near $89.8 by November 2025. Notable dips occurred after January 2022, with temporary recoveries around early 2024, but the general pattern from mid-2021 onward was declining.

Earnings per Share (EPS)

EPS demonstrated a growth pattern from 5.54 to a high of approximately 15.02 around January 2022, indicating increasing profitability during this period. After reaching this peak, EPS declined notably, hitting a low near 5.9 in April 2023. Subsequently, it recovered moderately and stabilized in the range of approximately 8 to 9.7 through 2024 and into 2025. The fluctuations suggest periods of both expansion and contraction in earnings capacity.

Price-to-Earnings Ratio (P/E)

The P/E ratio fluctuated broadly, starting around 22 in May 2020 and falling to a low of about 10.21 by August 2025. Periods of low P/E ratios tend to coincide with lower share prices relative to earnings, such as the late 2024 and 2025 timeframe, indicating potentially undervalued shares or lower investor expectations. The ratio was generally higher during early and mid-2020, decreasing steadily with some intermittent rises around 2022 and early 2023.

Overall, the data portrays an initial period of growth and optimism, reflected in rising share prices and EPS. Subsequently, the company experienced more volatility with declines in share price and EPS, though earnings stabilized somewhat in recent years. The falling P/E ratio suggests a market reassessment of valuation relative to earnings, potentially signaling caution among investors or changes in market conditions related to the company’s future prospects.

Share Price Trend

The share price exhibited significant volatility over the examined periods. Initially, the price climbed sharply from approximately $122 in early 2020 to a peak near $249 by mid-2021. This was followed by a general decline, with notable drops through 2022 and 2023, falling below the initial values to reach around $89 by late 2025. The movement indicates an initial strong market confidence that waned progressively in the subsequent years.

Operating Profit Per Share (OPPS) Trend

Operating profit per share showed a general upward trend from 2020 through early 2022, increasing from about $8 to a high nearing $19. After this peak, a downward correction occurred, with values decreasing to slightly above $8 by early 2023. Post correction, the OPPS demonstrated a moderate recovery and stabilization, fluctuating around $10 to $13 toward the end of the period, reflecting some operational improvements or margin stabilization.

Price to Operating Profit Ratio (P/OP)

The P/OP ratio started at around 15, generally declining until early 2022 where it dropped to under 10, suggesting the share price was becoming more reasonably valued relative to operating profits at that time. However, fluctuations were evident afterward, with the ratio increasing again to near 20 during late 2022, indicating possible market concerns or overvaluation. From 2023 onward, the P/OP ratio trended downward, reaching below 8 by late 2025, signaling that the share price discounted a lower growth or profitability outlook compared to operating profit performance.

Overall Analysis

The data reveals an initial period of robust share price growth accompanied by increasing operating profits, pointing to strong financial performance and favorable market sentiment. However, starting around 2022, a divergence occurred with the share price declining more sharply than operating profit, indicating a loss of investor confidence or concerns about future prospects. The falling P/OP ratio in later periods suggests that the market adjusted its valuation standards, possibly anticipating slower growth or increased risks. Despite some recovery in operating profits after an early 2023 dip, the share price remained subdued, reflecting cautious investor outlook.

Share Price Trend

The share price exhibited a general upward trend from early 2020 through mid-2021, rising from $122.33 to a peak of approximately $249.18. Subsequently, there was a noticeable decline beginning in late 2021, with the price decreasing steadily into early 2025. The share price dropped to a low near $89.80 by the end of the observed period. This trajectory indicates an initial investor optimism followed by a sustained period of depreciation.

Sales per Share Analysis

Sales per share demonstrated a consistent, albeit gradual, increase over the entire period. Starting at $160.20, it climbed steadily to just above $237.00 around early 2023 and then maintained a relatively stable plateau with minor fluctuations around $232 through to early 2025. The stability in sales per share suggests resilient revenue generation capability despite fluctuations in market valuation.

Price-to-Sales (P/S) Ratio Examination

The P/S ratio rose alongside the share price during the initial period, peaking at 1.21 in mid-2021, reflecting increased market valuations relative to sales. Post-peak, the ratio declined steadily, reaching approximately 0.39 by early 2025. This indicates that the market's valuation of sales has decreased over time, which could be attributed to either diminishing growth expectations or broader market sentiment shifts.

Overall Financial Insights

The data reveals a decoupling between the share price and sales per share after mid-2021: while sales remained stable and slightly upward trending, the share price diminished significantly. The declining P/S ratio corroborates this observation, implying that investors have become less willing to pay a premium for each dollar of sales. This pattern may reflect concerns about future profitability, competitive pressures, or market-wide factors impacting valuation multiples.

Share Price Trend

The share price demonstrated a notable increase from May 2020, starting at 122.33 USD, and reached a peak in July 2021 at 249.18 USD. Following this peak, the price experienced a general downtrend with fluctuations, declining significantly to 89.8 USD by November 2025. This indicates a period of strong growth followed by a considerable decrease in market value over the subsequent years.

Book Value per Share (BVPS) Trend

The book value per share showed steady growth over the entire period. Starting at 22.34 USD in May 2020, BVPS increased consistently, reaching 34.23 USD by November 2025. This reflects a positive trajectory in the company's net asset value on a per-share basis, suggesting ongoing accumulation of shareholder equity.

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

The P/BV ratio initially increased from 5.48 in May 2020 to a high of 8.63 in October 2021, indicating elevated market valuation relative to book value during this period. From that peak, the ratio declined steadily, falling to 2.62 by November 2025. The decreasing P/BV ratio, alongside rising book value and falling share price, suggests market price correction and potentially more conservative investor sentiment or reassessment of growth expectations.

Summary Insights

The data reflects an initial phase of substantial market enthusiasm characterized by rising share prices and a high P/BV ratio, likely influenced by strong financial performance or growth expectations. However, as the share price retraces significantly after mid-2021 while the book value per share continues to grow steadily, it indicates that the intrinsic value of the company has been strengthening despite weakening market confidence. The declining P/BV ratio over the latter years points to a valuation compression, possibly caused by external market conditions or reassessment of future prospects.