Target Corporation (TGT) Stock Valuation — PE Analysis
Discount Stores · NYSE
Current Price
$165.42
PE Ratio (TTM)
17.1x
Intrinsic Value
$160.68
-2.9% margin of safety
COMPETITIVE MOAT
INVESTMENT RISKS
Base case
TGT base case PE valuation
At a current price of $165.42, the base case PE valuation puts TGT fair value near $160.68 per share. That figure assumes 3.2% yearly earnings growth, a target PE multiple of 17.11x, and a 10% discount rate.
Intrinsic Value
$160.68
Margin of safety
-2.9%
Expected annual return
-0.6%
Base case assumptions: 3.2% annual earnings growth, 17.11x 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 TGT PE valuation
Adjust the target PE, earnings growth, and discount rate to see how the fair value and margin of safety for Target Corporation respond.
Open PE Calculator for TGTCompany Overview
Target Corp. engages in the operation and ownership of general merchandise stores. It offers food and general merchandise, clothing and household goods, electronics, and toys. Its brands include A New Day, All in Motion, Art Class, Auden, AVA & VIV, Boots and Barkley, Brightroom, Bullseye's Playground, Casaluna, Cat & Jack, Cloud Island, Colsie, dealworthy, Embark, Everspring, Favorite Day, Figmint, Future Collective, Gigglescape, Good & Gather, Goodfellow & Co, Hearth & Hand with Magnolia, Heyday, Hyde & EEK! Boutique, JoyLab, Kindfull, Kona Sol, Made By Design, Market Pantry, Mondo Llama, More Than Magic, Opalhouse, Open Story, Original Use, Pillowfort, Project 62, Room Essentials, Shade & Shore, Smartly, Smith & Hawken, Sonia Kashuk, Spritz, Sun Squad, Threshold, Universal Thread, up&up, Wild Fable, Wondershop, Xhilaration, California Roots, Casa Cantina, The Collection, Headliner, Jingle & Mingle, Rosé Bae, Photograph, SunPop, and Wine Cube. The company was founded by George Draper Dayton in 1902 and is headquartered in Minneapolis, MN.
Financial Metrics — TGT PE Stock Valuation Data
PE Ratio (TTM)
17.1x
PEG Ratio
1.39
Earnings Yield
5.84%
ROE (TTM)
26.7%
Revenue/Share (TTM)
$237.03
Dividend Yield
2.77%
Debt/Equity
1.05x
Frequently Asked Questions
What is the PE ratio of TGT?
The trailing twelve-month PE ratio of TGT reflects how much investors pay per dollar of Target Corporation's earnings. This metric is most useful when compared to Discount Stores peers and the company's own historical range.
Is TGT overvalued based on PE ratio?
TGT's PE of 17.1x combined with a PEG ratio of 1.39 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 Discount Stores, a DCF analysis may be more appropriate.
How do I value TGT stock using PE ratio?
To value Target Corporation using PE: (1) Compare the current PE (17.1x) against the Discount Stores median to assess relative pricing, (2) check the PEG ratio (1.39) 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 TGT?
TGT's PEG ratio is 1.39, calculated by dividing the PE ratio (17.1x) 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 TGT stock valuation?
PE ratio gives a quick relative read — how TGT is priced versus Discount Stores peers. DCF provides an absolute value based on projected free cash flows. For TGT, with a strong ROE of 26.7%, 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 TGT 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 Defensive valuationsP/E and DCF value TGT 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.