Apparel - Retail · NYSE
Current Price
$156.07
Intrinsic Value
Use the calculator below to estimate
Run a full DCF analysis on The TJX Companies, Inc. with auto-filled fundamentals, adjustable assumptions, and sensitivity heatmap.
The TJX Companies, Inc., together with its subsidiaries, operates as an off-price apparel and home fashions retailer. It operates through four segments: Marmaxx, HomeGoods, TJX Canada, and TJX International. The company sells family apparel, including footwear and accessories; home fashions, such as home basics, furniture, rugs, lighting products, giftware, soft home products, decorative accessories, tabletop, and cookware, as well as expanded pet, kids, and gourmet food departments; jewelry and accessories; and other merchandise. As of February 23, 2022, it operated 1,284 T.J. Maxx, 1,148 Marshalls, 850 HomeGoods, 59 Sierra, and 39 Homesense stores, as well as tjmaxx.com, marshalls.com, and sierra.com in the United States; 293 Winners, 147 HomeSense, and 106 Marshalls stores in Canada; 618 T.K. Maxx and 77 Homesense stores, as well as tkmaxx.com in Europe; and 68 T.K. Maxx stores in Australia. The company was incorporated in 1962 and is headquartered in Framingham, Massachusetts.
ROIC (TTM)
21.8%
ROE (TTM)
59.5%
FCF Yield
2.80%
Based on trailing twelve-month data, TJX shows a free cash flow per share of N/A and a ROIC of 21.8%, key inputs for stock valuation using the DCF method. The P/FCF ratio of N/A and FCF yield of 2.80% are important context metrics when evaluating TJX's stock valuation relative to peers.
The intrinsic value of TJX depends on assumptions about future growth rate, discount rate (WACC), and terminal value. A DCF model discounts projected free cash flows back to present value — small changes in WACC can shift the estimate by 20% or more, which is why sensitivity analysis is essential.
Whether TJX is undervalued depends on comparing the DCF-derived intrinsic value to the current market price of $156.07. A positive margin of safety (intrinsic value above market price) suggests potential undervaluation, but the degree of confidence depends on the reliability of your growth and discount rate assumptions.
To perform a DCF valuation on The TJX Companies, Inc.: (1) Start with the trailing free cash flow per share as the base, (2) project future FCF growth over 5-10 years based on Apparel - Retail industry trends and company fundamentals, (3) apply a discount rate (WACC) reflecting TJX's risk profile, and (4) add a terminal value for cash flows beyond the projection period.
DCF (Discounted Cash Flow) estimates what a company is worth today based on its future cash generation. For The TJX Companies, Inc., this means projecting how much free cash flow the Apparel - Retail will produce over the next 5-10 years, then discounting those amounts to today's dollars. TJX's ROIC of 21.8% indicates strong capital efficiency, which supports higher growth assumptions in the DCF model.
WACC (Weighted Average Cost of Capital) is the discount rate in a DCF model — it reflects the minimum return investors require. For TJX, the capital structure and equity risk premium determine WACC. A 1% increase in WACC typically reduces the intrinsic value by 10-15%.
