Target Corp. (NYSE:TGT)

Price to Earnings (P/E) Ratio

The P/E ratio presents a variable trend from 2019 through 2025. Beginning with values around 16 to 23 in 2019 and early 2020, it peaks at approximately 27.08 in October 2022. Following this peak, a declining pattern is observed, with the ratio decreasing steadily to approximately 10.21 by May 2025. This suggests that the stock became less expensive relative to its earnings over time in the latter part of the period analyzed.

Price to Operating Profit (P/OP) Ratio

The P/OP ratio follows a trajectory similar to the P/E ratio, starting near 11.35 in early 2019 and increasing to a peak of 19.56 in October 2022. Subsequently, there is a marked decrease reaching approximately 7.44 by May 2025. The initial rise indicates increasing market valuation relative to operating profit, while the subsequent drop could reflect changes in profitability or market sentiment.

Price to Sales (P/S) Ratio

The P/S ratio displays moderate fluctuation over the period. Initially below 1.0 in 2019 and 2020, it peaks at about 1.21 in October 2020, then declines consistently afterward. From 2022 onwards, values remain below 0.7, decreasing further to approximately 0.40 by May 2025. This decreasing trend may suggest diminishing market valuation relative to sales, possibly influenced by sales growth dynamics or changes in market expectations.

Price to Book Value (P/BV) Ratio

The P/BV ratio exhibits an initial upward trend from 3.71 in May 2019 to a peak of 8.63 in October 2021. Following this peak, the ratio declines progressively to 2.86 by May 2025. The early increase points to heightened investor valuation relative to book value, while the later decline indicates reduced market valuation per unit of book value, potentially reflecting shifts in asset valuations or investor outlook.

Summary of Observed Patterns

Across all four valuation ratios, a common pattern emerges: an initial period of growth or elevated valuation ratios up until late 2021 or 2022, followed by a sustained decline through to mid-2025. The peaks correspond generally to late 2021 and 2022 periods, suggesting potentially favorable market conditions or company performance during this time. The subsequent decreases in ratios may reflect market correction, adjustments in company financial performance, or changes in investor expectations over the following years.

Share Price Trend

The share price experienced an overall upward trend from May 2019 through October 2021, rising from $80.45 to a peak near $249.18. After this peak, there was a marked decline with some fluctuations, falling to $163.51 by January 2023, then further decreasing to $94.01 by May 2025. The share price exhibited significant volatility, with a notable surge between May 2020 and October 2021, followed by a sustained decline thereafter.

Earnings per Share (EPS) Trend

EPS data begins from February 2020, starting at $6.55. The EPS showed a general upward trajectory, peaking at $15.02 in April 2022. Subsequently, there was a general decline in EPS to $5.9 by July 2023, with some recovery observed later, reaching approximately $9.21 by May 2025. The EPS trend indicates initial growth followed by volatility and a partial recovery towards the later periods.

Price-to-Earnings (P/E) Ratio Trend

The P/E ratio started at 16.12 in February 2020 and fluctuated over the periods. A general decline in P/E is observed from a high of around 27.08 in January 2023 down to 10.21 by May 2025. This decreasing P/E ratio indicates the market valuation relative to earnings decreased, likely reflecting the decline in share price exceeding the changes in EPS.

Overall Financial Insights

The data suggests a period of strong growth in company valuation and earnings from early 2020 through late 2021 to early 2022. The subsequent periods show a weakening in share price and earnings, which led to lower market multiples as indicated by the falling P/E ratio. The partial recovery in EPS during the latest quarters did not correspond with a share price rebound, reflecting caution or other market factors affecting valuation. This pattern may indicate external challenges or market sentiment affecting investor perceptions despite earnings stabilization.

The share price exhibited significant fluctuation over the analyzed periods. Initially, the price increased steadily from $80.45 in early May 2019 to a peak of approximately $249.18 in mid-2021. Following this peak, a downward trend was observed with the share price declining to around $94.01 by early May 2025, indicating a phase of notable depreciation after its peak.

The operating profit per share (OP) data, available from early 2020, showed a rising trend from $9.3 to a peak near $19.35 by early 2022. After this peak, there was a general decline in operating profit per share, dropping to approximately $8.3 by mid-2023. Subsequently, the OP demonstrated a moderate recovery, stabilizing between $10 and $13 from mid-2023 through mid-2025, suggesting some operational improvement or stabilization in profitability after a period of volatility.

The price to operating profit ratio (P/OP) indicated varying investor valuation of the company's operating earnings. Initially, the ratio was relatively high, above 15 in mid to late 2020. It then decreased gradually to around 9.79 by early 2022, implying that the share price growth was accompanied by a stronger increase in operating profits, thus making shares appear more reasonably valued. However, the ratio rose again sharply, reaching values over 19 in early 2023, an indication of the share price weakening at a slower rate than operating profits or market reassessment increasing valuation multiples. After this peak, the ratio declined steadily to approximately 7.44 by early 2025, the lowest in the reported timeline, implying that the operating profit remained comparatively strong relative to the share price, possibly indicating better value or lowered market expectations on price appreciation.

Overall, the data reveals a cycle wherein share prices and operating profits initially rose, with prices outperforming profitability early on, then profits peaked and retreated, followed by a gradual stabilization in profitability concurrent with diminishing share prices. The oscillation in the P/OP ratio underscores shifting market sentiments and changing assessment of the company's earnings potential relative to its stock price during the period analyzed.

Share Price Summary

Strong upward trend until mid-2021, peaking near $249, followed by persistent decline to under $100 by mid-2025.

Operating Profit per Share Summary

Gradual increase from early 2020 to early 2022 peak near $19.35, followed by decline and moderate stabilization around $10–$13 thereafter.

Price to Operating Profit Ratio

High valuations in late 2020, decline by early 2022 indicating improved earnings, spike in early 2023 suggesting market volatility, and a steady decrease to a low ratio by early 2025.

The share price exhibits considerable volatility over the observed periods. Beginning at $80.45, it experiences a general upward trend reaching a peak of approximately $249.18 in July 2021. After this peak, the share price declines sharply, dropping to around $94.01 by May 2025. This decline follows a sequence of intermittent rises and falls, indicating fluctuating investor sentiment or external market pressures during the latter periods.

Sales per share data is available starting in May 2020, showing consistent growth from $155.92 to a peak of $237.03 by January 2023. After this peak, sales per share stabilize with minor fluctuations, generally maintaining values above $230 through May 2025. This pattern indicates steady revenue generation on a per-share basis despite share price volatility.

The Price-to-Sales (P/S) ratio reflects the relationship between the share price and sales per share. Initially, from May 2020, the P/S ratio rises from 0.68 to a peak of 1.21 in July 2021, coinciding with the share price peak. Following this peak, the ratio declines significantly, reaching as low as 0.40 by May 2025. This decrease suggests that while sales per share remained relatively stable, the share price fell, reducing the valuation multiple.

Summary of Key Trends:

The company experienced a period of share price growth until mid-2021, alongside rising sales per share and increasing valuation multiples.

Post mid-2021, the share price decreased significantly, while sales per share remained steady at a high level, indicating resilience in operational performance despite market valuation pressure.

The falling P/S ratio after 2021 implies that the market’s valuation of the company became more conservative relative to its sales, potentially reflecting increased risk perception or changing market conditions.

The relative stability in sales per share coupled with declining share price and P/S ratio highlights a disconnect between market price movements and underlying sales performance in recent periods.

Share Price Trend

The share price exhibited significant fluctuations throughout the observed periods. Initially, it rose from $80.45 in May 2019 to a peak of $249.18 in July 2021, indicating strong market appreciation. Subsequently, a notable decline occurred, with the price dropping to $94.01 by May 2025. The decline was gradual with some intermittent rebounds, such as a rise to $166.67 in February 2024 before the price further decreased in later quarters.

Book Value Per Share (BVPS) Trend

BVPS showed a steady upward trend with minor fluctuations. Starting at $21.7 in May 2019, BVPS increased consistently over the periods, reaching $32.9 by May 2025. This indicates an overall growth in the company's net asset value on a per-share basis, suggesting improved fundamentals or retained earnings accumulation over time despite short-term volatility.

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

The P/BV ratio began at 3.71 in May 2019 and rose sharply to a high of 8.63 in October 2021, reflecting heightened market optimism or expected growth above the underlying book value. After this peak, the ratio steadily declined, reaching 2.86 in May 2025. This downward trend indicates a market reassessment of the company's valuation relative to its book value, potentially due to the concurrent share price decline and continued moderate growth in BVPS.

Summary Insights

The data reveal that the company's market valuation experienced rapid appreciation followed by a significant correction. While the book value per share demonstrated consistent growth, the share price was considerably more volatile, leading to fluctuations in the price-to-book ratio. The sustained increase in BVPS suggests strengthening asset positions or profitability, yet the falling P/BV ratio implies investor caution or reduced growth expectations in the latter periods. Overall, the financial data suggest a maturing company with improving fundamentals but facing market challenges affecting its share price valuation.