The TJX Companies, Inc. (TJX) Stock Valuation — PE Analysis
Apparel - Retail · NYSE
Current Price
$140.51
PE Ratio (TTM)
26.0x
Intrinsic Value
$145.5
+3.4% margin of safety
COMPETITIVE MOAT
↑Off-Price Retailer Scale and Brand Relationships
TJX's vast store network and global sourcing capabilities create significant leverage with vendors. This allows them to secure desirable branded merchandise at lower costs, a key differentiator.
↑Customer Loyalty to Value Proposition
Consumers actively seek out TJX's treasure-hunt shopping experience and perceived value. This ingrained habit and desire for deals fosters repeat business and brand affinity.
↑Merchandise Mix and Inventory Management
The company excels at quickly turning over diverse inventory, adapting to fashion trends and consumer preferences. This agility minimizes markdowns and maximizes profitability.
INVESTMENT RISKS
↓Economic Sensitivity and Consumer Spending
While TJX benefits from value-seeking consumers, a severe economic downturn could still impact discretionary spending across all retail segments.
↓Supply Chain Disruptions and Inventory Risk
Global sourcing exposes TJX to potential supply chain disruptions, which could affect merchandise availability and pricing, impacting their core model.
↓Brand Dilution from Off-Price Model
The constant influx of branded goods at discounted prices could potentially dilute the perceived exclusivity and desirability of those brands over time.
Base case
TJX base case PE valuation
A base case PE valuation for TJX estimates a fair value of about $145.5 per share, against a current price of $140.51. The model assumes 6.7% annual earnings growth, a 25.88x target PE multiple, and a 10% discount rate.
Intrinsic Value
$145.5
Margin of safety
+3.4%
Expected annual return
+0.7%
Base case assumptions: 6.7% annual earnings growth, 25.88x target PE, 10% discount rate, 5 year projection. Data as of 2026-08-21.
This base case uses default assumptions and is not financial advice. The fair value changes significantly when the target PE or earnings growth rate changes. Open the calculator to set your own assumptions and see the full sensitivity range.
Customize the TJX PE valuation
Adjust the target PE, earnings growth, and discount rate to see how the fair value and margin of safety for The TJX Companies, Inc. respond.
Open PE Calculator for TJXCompany Overview
The TJX Companies, Inc., alongside its various associated businesses, functions as a major discount retailer focusing on clothing and household decor. Its operations are organized into four primary divisions: Marmaxx, HomeGoods, TJX Canada, and TJX International. The enterprise markets an extensive selection of goods, including clothing for all family members (such as shoes and complementary items); a broad array of home furnishings and accessories (ranging from essential household goods, furniture, floor coverings, and lighting fixtures to gift items, soft textiles, decorative pieces, dining wares, and kitchen utensils), alongside growing departments for pet supplies, children's products, and gourmet foodstuffs. Jewelry, additional accessories, and various general merchandise are also available. By the close of February 23, 2022, TJX maintained a considerable retail network across several continents. In the United States, this footprint included 1,284 T.J. Maxx, 1,148 Marshalls, 850 HomeGoods, 59 Sierra, and 39 Homesense physical stores, complemented by online portals like tjmaxx.com, marshalls.com, and sierra.com. Its Canadian presence featured 293 Winners, 147 HomeSense, and 106 Marshalls outlets. European consumers could visit 618 T.K. Maxx and 77 Homesense locations, with an e-commerce option at tkmaxx.com. Furthermore, Australia hosted 68 T.K. Maxx establishments. Established in 1962, the firm's corporate headquarters are located in Framingham, Massachusetts.
Financial Metrics — TJX PE Stock Valuation Data
PE Ratio (TTM)
26.0x
PEG Ratio
1.15
Earnings Yield
3.87%
ROE (TTM)
59.8%
Revenue/Share (TTM)
$55.83
Dividend Yield
1.29%
Debt/Equity
1.34x
Frequently Asked Questions
What is the PE ratio of TJX?
The trailing twelve-month PE ratio of TJX reflects how much investors pay per dollar of The TJX Companies, Inc.'s earnings. This metric is most useful when compared to Apparel - Retail peers and the company's own historical range.
Is TJX overvalued based on PE ratio?
TJX's PE of 26.0x combined with a PEG ratio of 1.15 provides a growth-adjusted perspective. A PEG near 1.0 means the P/E is roughly in line with the earnings growth rate. Keep in mind that PE-based valuation works best for profitable, mature companies — for high-growth or cyclical Apparel - Retail, a DCF analysis may be more appropriate.
How do I value TJX stock using PE ratio?
To value The TJX Companies, Inc. using PE: (1) Compare the current PE (26.0x) against the Apparel - Retail median to assess relative pricing, (2) check the PEG ratio (1.15) to adjust for growth expectations, (3) review the 5-year PE range to identify where the stock sits historically, and (4) estimate fair value by multiplying a target PE by forward EPS estimates. This relative approach complements DCF's absolute valuation.
What is the PEG ratio of TJX?
TJX's PEG ratio is 1.15, calculated by dividing the PE ratio (26.0x) by the expected earnings growth rate. A PEG near 1.0 means the P/E is roughly in line with the expected earnings growth rate. Note that PEG accuracy depends on the reliability of growth estimates.
Should I use PE ratio or DCF for TJX stock valuation?
PE ratio gives a quick relative read — how TJX is priced versus Apparel - Retail peers. DCF provides an absolute value based on projected free cash flows. For TJX, with a strong ROE of 59.8%, both methods are worth using — PE for a market-relative check, DCF to stress-test whether fundamentals justify the price. Each method has blind spots: PE ignores capital structure and cash flow quality, while DCF is sensitive to growth and discount rate assumptions.
Learn More
- See TJX DCF Valuation → — Intrinsic value via Discounted Cash Flow analysis
- PE Methodology — Step-by-step guide to PE ratio stock valuation
- DCF Methodology — Guide to discounted cash flow analysis
- PE Ratio — Understanding the price-to-earnings ratio
- Intrinsic Value — How to evaluate stock fair value
Related PE Valuations
All Consumer Cyclical valuationsP/E and DCF value TJX with different methods and assumptions, so the two conclusions can differ. Compare the DCF intrinsic value.
Price as of 2026-08-21. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.