Is Target Corporation (TGT) stock trading below fair value?
Investors Observer gives Target Corporation (TGT) a strong evaluation score of 86 based on its analysis. The proprietary rating system takes into account the underlying health of a company by analyzing its stock price, earnings and rate of growth. TGT currently holds a better value than 86% of the shares based on these metrics. Long-term buy and hold investors should find the most relevant valuation ranking system when making investment decisions.
TGT has a twelve-month price-to-earnings (PE) ratio of 19.3, which puts it around the historic average of around 15. TGT is currently trading at an average value due to investors paying around this. that the action is worth in relation to its profits. TGT’s 12-month earnings per share (EPS) of 12.56 justifies its market share price. The tracking PE ratios do not take into account the company’s projected growth rate. So some companies will have high PE ratios due to high growth recruiting more investors even though the underlying company has produced low profits so far. TGT currently has a 12-month forward PEG to Growth Ratio of 1.28. The market is currently overvaluing TGT relative to its projected growth due to the PEG ratio above fair market value of 1. TGT’s PEG is derived from its forward price / earnings ratio divided by its growth rate. Because PEG ratios include more fundamentals of a company’s overall health with an additional focus on the future, they are one of the valuation metrics most used by analysts.
Overall, these valuation metrics paint a pretty poor picture for TGT at its current price due to an overvalued PEG ratio despite strong growth. The PE and PEG for TGT are below market average, resulting in a valuation score of 86. Click here for the full Target Corporation (TGT) share report.