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Target PE Ratio

: 16.12 (As of Today)
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The PE Ratio, or Price-to-Earnings ratio, or P/E Ratio, is a financial ratio used to compare a company's market price to its Earnings per Share (Diluted). As of today (2022-01-21), Target's share price is USD219.10. Target's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Oct. 2021 was USD13.59. Therefore, Target's PE Ratio for today is 16.12.

Good Sign:

Target Corp stock PE Ratio (=16.31) is close to 2-year low of 14.92


The historical rank and industry rank for Target's PE Ratio or its related term are showing as below:

NYSE:TGT' s PE Ratio Range Over the Past 10 Years
Min: 10.17   Med: 14.47   Max: 31.41
Current: 16.1

10.17
31.41

During the past 13 years, the highest PE Ratio of Target was 31.41. The lowest was 10.17. And the median was 14.47.


NYSE:TGT's PE Ratio is ranked higher than
54% of the 220 Companies
in the Retail - Defensive industry.

( Industry Median: 17.23 vs. NYSE:TGT: 16.10 )

Target's Earnings per Share (Diluted) for the three months ended in Oct. 2021 was USD3.04. Its Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Oct. 2021 was USD13.59.

As of today (2022-01-21), Target's share price is USD219.10. Target's EPS without NRI for the trailing twelve months (TTM) ended in Oct. 2021 was USD13.59. Therefore, Target's PE Ratio without NRI for today is 16.12.

During the past 13 years, Target's highest PE Ratio without NRI was 23.98. The lowest was 10.20. And the median was 15.24.

Target's EPS without NRI for the three months ended in Oct. 2021 was USD3.04. Its EPS without NRI for the trailing twelve months (TTM) ended in Oct. 2021 was USD13.59.

During the past 12 months, Target's average EPS without NRI Growth Rate was 80.00% per year. During the past 3 years, the average EPS without NRI Growth Rate was 17.80% per year. During the past 5 years, the average EPS without NRI Growth Rate was 10.50% per year. During the past 10 years, the average EPS without NRI Growth Rate was 5.90% per year.

During the past 13 years, Target's highest 3-Year average EPS without NRI Growth Rate was 45.70% per year. The lowest was -6.20% per year. And the median was 8.40% per year.

Target's EPS (Basic) for the three months ended in Oct. 2021 was USD3.07. Its EPS (Basic) for the trailing twelve months (TTM) ended in Oct. 2021 was USD13.71.


Target PE Ratio Historical Data

The historical data trend for Target's PE Ratio can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Target Annual Data
Trend Jan12 Jan13 Jan14 Jan15 Jan16 Jan17 Jan18 Jan19 Jan20 Jan21
PE Ratio
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 13.75 14.22 13.25 17.41 20.97

Target Quarterly Data
Jan17 Apr17 Jul17 Oct17 Jan18 Apr18 Jul18 Oct18 Jan19 Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21
PE Ratio Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 20.16 20.97 16.91 20.78 19.10

Competitive Comparison

For the Discount Stores subindustry, Target's PE Ratio, along with its competitors' market caps and PE Ratio data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

Target PE Ratio Distribution

For the Retail - Defensive industry and Consumer Defensive sector, Target's PE Ratio distribution charts can be found below:

* The bar in red indicates where Target's PE Ratio falls into.



Target PE Ratio Calculation

The PE Ratio, or Price-to-Earnings ratio, or P/E Ratio, is a financial ratio used to compare a company's market price to its Earnings per Share (Diluted). It is the most widely used ratio in the valuation of stocks.

Target's PE Ratio for today is calculated as

PE Ratio=Share Price/Earnings per Share (Diluted) (TTM)
=219.10/13.590
=16.12

Target's Share Price of today is USD219.10.
Target's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Oct. 2021 adds up the quarterly data reported by the company within the most recent 12 months, which was USD13.59.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

It can also be calculated from the numbers for the whole company:


There are at least three kinds of PE Ratios used by different investors. They are Trailing Twelve Month PE Ratio or PE Ratio (TTM), Forward PE Ratio, or PE Ratio without NRI. A new PE Ratio based on inflation-adjusted normalized PE Ratio is called Shiller PE Ratio, after Yale professor Robert Shiller.

In the calculation of PE Ratio, the earnings per share used are the earnings per share over the past 12 months. For Forward PE Ratio, the earnings are the expected earnings for the next twelve months. In the case of PE Ratio without NRI, the reported earnings less the non-recurring items are used.

For Shiller PE Ratio, the earnings of the past 10 years are inflation-adjusted and averaged. Since it looks at the average over the last 10 years, Shiller PE Ratio is also called PE10.


Target  (NYSE:TGT) PE Ratio Explanation

The PE Ratio can be viewed as the number of years it takes for the company to earn back the price you pay for the stock. For example, if a company earns $2 a share per year, and the stock is traded at $30, the PE Ratio is 15. Therefore it takes 15 years for the company to earn back the $30 you paid for its stock, assuming the earnings stays constant over the next 15 years.

In real business, earnings never stay constant. If a company can grow its earnings, it takes fewer years for the company to earn back the price you pay for the stock. If a company's earnings decline it takes more years. As a shareholder, you want the company to earn back the price you pay as soon as possible. Therefore, lower P/E stocks are more attractive than higher P/E stocks so long as the PE Ratio is positive. Also for stocks with the same PE Ratio, the one with faster growth business is more attractive.

If a company loses money, the PE Ratio becomes meaningless.

To compare stocks with different growth rates, Peter Lynch invented a ratio called PEG Ratio. PEG Ratio is defined as the PE Ratio divided by the growth ratio. He thinks a company with a PE Ratio equal to its growth rate is fairly valued. Still he said he would rather buy a company growing 20% a year with a PE Ratio of 20, instead of a company growing 10% a year with a PE Ratio of 10.

Because the PE Ratio measures how long it takes to earn back the price you pay, the PE Ratio can be applied to the stocks across different industries. That is why it is the one of the most important and widely used indicators for the valuation of stocks.

Similar to the PE Ratio without NRI or PS Ratio or Price-to-Operating-Cash-Flow or Price-to-Free-Cash-Flow , the PE Ratio measures the valuation based on the earning power of the company. This is where it is different from the PB Ratio , which measures the valuation based on the company's balance sheet.


Be Aware

Investors need to be aware that the PE Ratio can be misleading a lot of times, especially when the underlying business is cyclical and unpredictable. As Peter Lynch pointed out, cyclical businesses have higher profit margins at the peaks of the business cycles. Their earnings are high and PE Ratios are artificially low. It is usually a bad idea to buy a cyclical business when the PE Ratio is low. A better ratio to identify the time to buy a cyclical businesses is the PS Ratio .

PE Ratio can also be affected by non-recurring-items such as the sale of part of businesses. This may increase for the current year or quarter dramatically. But it cannot be repeated over and over. Therefore PE Ratio without NRI is a more accurate indication of valuation than PE Ratio.


Target PE Ratio Related Terms

Thank you for viewing the detailed overview of Target's PE Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.


Target Business Description

Target logo
Industry
Consumer Defensive » Retail - Defensive NAICS : 452319 SIC : 5331
Address
1000 Nicollet Mall, Minneapolis, MN, USA, 55403
With 1,897 stores (as of the end of fiscal 2020), Target is a leading American general merchandise retailer, offering a variety of products across several categories, including beauty and household essentials (26% of fiscal 2020 sales), food and beverage (20%), home furnishings and décor (20%), hardlines (18%), and apparel and accessories (16%). Most of Target's stores are large, averaging nearly 130,000 square feet. The company has a significant e-commerce presence, deriving around 18% of sales from the channel (up from about 9% in fiscal 2019, before the pandemic). In addition to its namesake stores, Target owns Shipt, an online same-day delivery platform. After it exited Canada in 2015, virtually all of Target's revenue is generated from the United States.
Executives
Lundquist Stephanie A officer: Executive Officer 1000 NICOLLET MALL MINNEAPOLIS MN 55403
Mcnamara Michael Edward officer: Executive Officer 1000 NICOLLET MALL MINNEAPOLIS MN 55403
Schindele Mark officer: Executive Officer 1000 NICOLLET MALL MINNEAPOLIS MN 55403
Hennington Christina officer: Executive Officer 1000 NICOLLET MALL MINNEAPOLIS MN 55403
Rice Derica W director LILLY CORPORATE CENTER INDIANAPOLIS IN 46285
Liu Don H officer: Executive Officer 1000 NICOLLET MALL, TPS-3155 MINNEAPOLIS MN 55403
Cornell Brian C director, officer: Executive Officer 1000 NICOLLET MALL MINNEAPOLIS MN 55403
Kremer Melissa K officer: Executive Officer 1000 NICOLLET MALL MINNEAPOLIS MN 55403
Ward Laysha officer: Executive Officer 203 EAST MAIN STREET MS P12-02 SPARTANBURG SC 29319
Fiddelke Michael J officer: Executive Officer 1000 NICOLLET MALL MINNEAPOLIS MN 55403
Mulligan John J officer: Executive Officer 1000 NICOLLET MALL TPS-2672 MINNEAPOLIS MN 55403
Gomez Richard H. officer: Executive Officer 1000 NICOLLET MALL MINNEAPOLIS MN 55403
Sando Jill officer: Executive Officer 1000 NICOLLET MALL MINNEAPOLIS MN 55403
Austin Roxanne S director 200 N SEPULVEDA BLVD PO BOX 956 MS ES/001/A102 EL SEGUNDO CA 90245
Harrison Robert M officer: Chief Accounting Officer 1000 NICOLLET MALL MINNEAPOLIS MN 55403

Target Headlines

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