TargetXSWX:TGT -2.02%77 Return-on-Tangible-Equity is 19.55% as of Apr. 2026, which is 32% below its 10-year median of 28.73. GuruFocus rates XSWX:TGT with a GF Score™ of 77/100 and a GF Value™ of CHF107.42. The stock has 9 warning signs investors should review. Among 298 Retail - Defensive companies, Target ranks better than 73.15% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Target's annualized net income for the quarter that ended in Apr. 2026 was CHF2,460 Mil. Target's average shareholder tangible equity for the quarter that ended in Apr. 2026 was CHF12,588 Mil. Therefore, Target's annualized Return-on-Tangible-Equity for the quarter that ended in Apr. 2026 was 19.55%.
The historical rank and industry rank for Target's Return-on-Tangible-Equity or its related term are showing as below:
XSWX:TGT'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 22.17 Med: 28.73 Max: 53.55
Current: 22.17
During the past 13 years, Target's highest Return-on-Tangible-Equity was 53.55%. The lowest was 22.17%. And the median was 28.73%.
XSWX:TGT's Return-on-Tangible-Equity is ranked better than 73.15% of 298
companies
in the Retail - Defensive industry
Industry Median: 11.085
vs XSWX:TGT: 22.17
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Target Return-on-Tangible-Equity Related Terms
Target Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Target's Return-on-Tangible-Equity 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.
XSWX:TGT vs DG, DLTR, BJ: Return-on-Tangible-Equity Comparison
For the Discount Stores subindustry, Target's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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 Return-on-Tangible-Equity vs Retail - Defensive Industry
For the Retail - Defensive industry and Consumer Defensive sector, Target's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Target's Return-on-Tangible-Equity falls into.
* 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.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Apr. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 19.55% mean?
Target (XSWX:TGT) has a Return-on-Tangible-Equity of 19.55% as of Apr. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Target and its competitors. This is 32% below median its historical median of 28.73. Over the past decade, Target's Return-on-Tangible-Equity has ranged from 22.17 to 53.55. According to the industry distribution chart, Target ranks #80 out of 298 companies in the Retail - Defensive industry, placing it in the top 26.8%.
Is Target's Return-on-Tangible-Equity too high?
Target's current Return-on-Tangible-Equity of 19.55% is 32% below median its 10-year median of 28.73. Over the past 10 years, this metric has ranged from a low of 22.17 to a high of 53.55. The Retail - Defensive industry median Return-on-Tangible-Equity is 11.09. Target's value of 19.55% is 76.4% above this industry median. Based on the distribution chart, Target ranks #80 out of 298 companies in the Retail - Defensive industry, which is above the industry midpoint. Overall, Target has a GF Score™ of 77/100, reflecting its overall financial health beyond just this single metric.
How does Target's Return-on-Tangible-Equity compare to DG and DLTR?
According to the Retail - Defensive industry distribution chart, Target ranks #80 out of 298 companies for Return-on-Tangible-Equity. This puts Target in the upper half of its industry. The industry median Return-on-Tangible-Equity is 11.09. Target's value of 19.55% is 76.4% above this benchmark. Historically, Target's own Return-on-Tangible-Equity has ranged from 22.17 to 53.55 over the past decade. While the company's 10-year median is 28.73 vs. the industry median of 11.09, Target has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Equity for a Retail - Defensive company?
The median Return-on-Tangible-Equity among Retail - Defensive companies is 11.09, based on 298 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Target's current Return-on-Tangible-Equity of 19.55% is 76.4% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Target and its competitors. For the Retail - Defensive industry, the median Return-on-Tangible-Equity is 11.09 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Target's current Return-on-Tangible-Equity is 19.55%, which is 32% below median its own 10-year median of 28.73. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Target stock overvalued right now?
Target (XSWX:TGT) has a current Return-on-Tangible-Equity of 19.55%. The stock's GF Value™ is CHF107.42, compared to a current price of CHF111.26 — trading 3.6% above its estimated fair value. The current Return-on-Tangible-Equity is 19.55%, which is 32% below median its 10-year median of 28.73 and 76.4% above the Retail - Defensive industry median of 11.09. Target's overall GF Score™ is 77/100 with 9 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Target (XSWX:TGT), the current Return-on-Tangible-Equity is 19.55% as of Apr. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Target (XSWX:TGT) Overvalued in 2026?
Based on GuruFocus' analysis, Target stock appears to be overvalued.
The current stock price of CHF111.26 is trading 3.6% above its estimated GF Value™ of CHF107.42.
Key valuation signals for XSWX:TGT:
Return-on-Tangible-Equity: 19.55% (32% below median its 10-year median of 28.73)
GF Value™: CHF107.42 vs. price of CHF111.26 (3.6% above fair value)
Industry Position: 76.4% above the Retail - Defensive median (#80 of 298)
No single metric tells the full story. See the XSWX:TGT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Target's start dates back to 1962, but now it is one of the largest discount retailers in the United States (where it derives all of its sales), operating just under 2,000 stores and generating over $104 billion in fiscal 2025 sales. The company offers a broad assortment of merchandise across categories including apparel and accessories (16% of fiscal 2025 revenue), beauty and household essentials (30%), food and beverage (24%), hardlines (15%), as well as home furnishings (15%). Target's model is anchored in its physical store base, which fulfills more than 97% of sales. Around 30% of sales are derived from its own private-label brands.
77GF Score
Get the complete analysis for XSWX:TGT
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