Discount Stores · NYSE
Current Price
$127.87
Intrinsic Value
Use the calculator below to estimate
Run a PE ratio stock valuation on Target Corporation with auto-filled earnings data, adjustable target PE, and instant fair value estimate.
Target Corporation operates as a general merchandise retailer in the United States. The company offers food assortments, including perishables, dry grocery, dairy, and frozen items; apparel, accessories, home décor products, electronics, toys, seasonal offerings, food, and other merchandise; and beauty and household essentials. It also provides in-store amenities, such as Target Café, Target Optical, Starbucks, and other food service offerings. The company sells its products through its stores; and digital channels, including Target.com. As of March 09, 2022, the company operated approximately 2,000 stores. Target Corporation was incorporated in 1902 and is headquartered in Minneapolis, Minnesota.
Earnings Yield
6.40%
ROE (TTM)
23.9%
Based on trailing twelve-month data, TGT has earnings per share of N/A and trades at a PE ratio of N/A. These are key inputs for stock valuation using the PE ratio method.
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.
Whether TGT is overvalued depends on comparing its PE ratio to Discount Stores peers, historical averages, and growth expectations. A PE above the sector average may indicate overvaluation, but high-growth companies often command premium multiples. Consider pairing PE analysis with a DCF model for a more complete picture.
To value Target Corporation using PE: (1) Compare the current PE against the Discount Stores median to assess relative pricing, (2) check the PEG ratio 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.
The PEG ratio divides the PE ratio by the expected earnings growth rate, providing a growth-adjusted valuation metric. A PEG below 1.0 may indicate undervaluation relative to growth, while above 2.0 may suggest overvaluation. PEG is most reliable for companies with stable, predictable earnings growth.
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 23.9%, 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.
