Target Corporation (TGT) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-19.2%

$127.56

vs $157.80 price

Levered DCF

$75.74

After debt service

Piotroski score

7 / 9

Strong

Altman Z-score

3.33

Safe zone

Rating

B+

Overall 3 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	12.93×	15.51×	16.24×	27.99×	15.3×	20.75×	17.25×	12.8×
P/B	2.96×	4.33×	5×	6.93×	8.28×	6.28×	4.78×	3.33×
P/S	0.46×	0.6×	0.63×	0.71×	1×	0.97×	0.72×	0.5×
EV / EBITDA	7.51×	9.08×	9.65×	14.36×	9.76×	10.8×	9.6×	7.49×
Gross margin	27.9%	28.2%	27.5%	24.6%	29.3%	29.3%	29.8%	29.3%
Operating margin	4.9%	5.2%	5.3%	3.5%	8.4%	7.0%	6.0%	5.5%
Net margin	3.5%	3.8%	3.9%	2.5%	6.6%	4.7%	4.2%	3.9%
Current ratio	0.94×	0.94×	0.91×	0.92×	0.99×	1.03×	0.89×	0.83×
Debt / equity	1.26×	1.36×	1.46×	1.7×	1.28×	1.05×	1.18×	1.19×
Interest coverage	11.5×	13.54×	11.37×	8.05×	21.25×	6.69×	9.77×	8.92×
Dividend yield	4.3%	3.2%	3.0%	2.4%	1.5%	1.5%	2.4%	3.5%
Payout ratio	55.4%	50.0%	48.6%	66.0%	22.3%	30.7%	40.5%	45.5%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	22.9%	27.9%	30.8%	24.8%	54.2%	30.2%	27.7%	26.0%
Return on invested capital	9.8%	11.1%	11.9%	9.1%	21.5%	15.9%	12.7%	11.9%
Return on assets	6.2%	7.1%	7.5%	5.2%	12.9%	8.5%	7.7%	7.1%
Free cash flow yield	5.9%	7.0%	5.7%	-1.9%	4.8%	8.7%	7.2%	6.5%
Earnings yield	7.7%	6.4%	6.2%	3.6%	6.5%	4.8%	5.8%	7.8%
Enterprise value	$62.7B	$78.6B	$83B	$94.7B	$116.8B	$97.3B	$69.8B	$49.5B
Net debt / EBITDA	1.77×	1.75×	1.84×	2.55×	0.88×	0.73×	1.82×	1.8×
Cash conversion cycle (days)	5	4	4	6	-3	-8	-2	4