Intrinsic value of TJX - TJX

Previous Close

$68.92

  Intrinsic Value

$74.85

stock screener

  Rating & Target

hold

+9%

  Value-price divergence*

+25%

Previous close

$68.92

 
Intrinsic value

$74.85

 
Up/down potential

+9%

 
Rating

hold

 
Value-price divergence*

+25%

*Intrinsic value change (in %) minus stock price change (in %) in the past 12 months.

We calculate the intrinsic value of TJX stock by summing up the current values of future distributable cash flows generated by the company and dividing the sum by the number of outstanding shares. As such, the intrinsic value calculation depends entirely on projections. The more accurate your projections of the company's performance are - the more reliable is the intrinsic value calculation result. Please make sure to check the stock valuation input data below and adjust it if necessary. The quality of the output (intrinsic valuation result) is only as good as the quality of the input. See also DISCLAIMERS.

STOCK VALUATION INPUT DATA

Revenue (in 2017), $M
Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Variable cost ratio, %
Fixed operating expenses, $M
Interest rate on debt, %
Effective corporate tax rate, %
Production assets / Revenue, %
Life of production assets, yrs
Working capital / Revenue, %
Revenue / Adjusted assets
Adjusted equity ratio
Cash flow adjustment, % of Revenue
Book value of equity, $M
Shares outstanding, mln
Market capitalization, $bln 44.8

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
2017(a)
   2018
   2019
   2020
   2021
   2022
   2023
   2024
   2025
   2026
   2027
   2028
   2029
   2030
   2031
   2032
   2033
   2034
   2035
   2036
   2037
   2038
   2039
   2040
   2041
   2042
   2043
   2044
   2045
   2046
   2047

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  7.24
  3.20
  3.38
  3.54
  3.69
  3.82
  3.94
  4.04
  4.14
  4.23
  4.30
  4.37
  4.44
  4.49
  4.54
  4.59
  4.63
  4.67
  4.70
  4.73
  4.76
  4.78
  4.80
  4.82
  4.84
  4.86
  4.87
  4.88
  4.90
  4.91
  4.92
Revenue, $m
  33,184
  34,246
  35,403
  36,657
  38,009
  39,461
  41,014
  42,673
  44,439
  46,317
  48,310
  50,422
  52,658
  55,023
  57,523
  60,162
  62,947
  65,885
  68,981
  72,244
  75,680
  79,299
  83,107
  87,115
  91,332
  95,768
  100,432
  105,337
  110,494
  115,914
  121,612
Variable operating expenses, $m
 
  30,136
  31,154
  32,256
  33,445
  34,722
  36,088
  37,546
  39,100
  40,751
  42,503
  44,341
  46,308
  48,388
  50,586
  52,907
  55,356
  57,939
  60,663
  63,532
  66,554
  69,736
  73,085
  76,610
  80,318
  84,219
  88,321
  92,634
  97,169
  101,936
  106,946
Fixed operating expenses, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total operating expenses, $m
  29,434
  30,136
  31,154
  32,256
  33,445
  34,722
  36,088
  37,546
  39,100
  40,751
  42,503
  44,341
  46,308
  48,388
  50,586
  52,907
  55,356
  57,939
  60,663
  63,532
  66,554
  69,736
  73,085
  76,610
  80,318
  84,219
  88,321
  92,634
  97,169
  101,936
  106,946
Operating income, $m
  3,750
  4,110
  4,250
  4,401
  4,564
  4,739
  4,926
  5,126
  5,339
  5,566
  5,806
  6,080
  6,350
  6,635
  6,937
  7,255
  7,591
  7,945
  8,318
  8,712
  9,126
  9,563
  10,022
  10,505
  11,014
  11,549
  12,111
  12,703
  13,325
  13,978
  14,665
EBITDA, $m
  4,409
  4,578
  4,733
  4,901
  5,081
  5,276
  5,483
  5,705
  5,941
  6,192
  6,459
  6,741
  7,040
  7,356
  7,690
  8,043
  8,415
  8,808
  9,222
  9,658
  10,118
  10,601
  11,111
  11,647
  12,210
  12,803
  13,427
  14,083
  14,772
  15,497
  16,258
Interest expense (income), $m
  73
  87
  96
  107
  118
  130
  144
  158
  173
  189
  206
  224
  243
  264
  285
  308
  332
  357
  384
  412
  442
  473
  506
  540
  577
  615
  655
  698
  742
  789
  838
Earnings before tax, $m
  3,723
  4,024
  4,153
  4,294
  4,446
  4,609
  4,783
  4,969
  5,166
  5,377
  5,600
  5,856
  6,107
  6,372
  6,652
  6,947
  7,259
  7,588
  7,935
  8,300
  8,685
  9,090
  9,516
  9,965
  10,437
  10,934
  11,456
  12,005
  12,582
  13,189
  13,827
Tax expense, $m
  1,425
  1,086
  1,121
  1,159
  1,200
  1,244
  1,291
  1,342
  1,395
  1,452
  1,512
  1,581
  1,649
  1,720
  1,796
  1,876
  1,960
  2,049
  2,142
  2,241
  2,345
  2,454
  2,569
  2,691
  2,818
  2,952
  3,093
  3,241
  3,397
  3,561
  3,733
Net income, $m
  2,298
  2,937
  3,032
  3,135
  3,245
  3,364
  3,491
  3,627
  3,772
  3,925
  4,088
  4,275
  4,458
  4,651
  4,856
  5,071
  5,299
  5,539
  5,792
  6,059
  6,340
  6,636
  6,947
  7,274
  7,619
  7,982
  8,363
  8,764
  9,185
  9,628
  10,094

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  3,473
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total assets, $m
  12,884
  9,712
  10,041
  10,396
  10,780
  11,191
  11,632
  12,102
  12,603
  13,136
  13,701
  14,300
  14,934
  15,605
  16,314
  17,062
  17,852
  18,685
  19,564
  20,489
  21,463
  22,490
  23,570
  24,707
  25,902
  27,160
  28,483
  29,874
  31,337
  32,874
  34,490
Adjusted assets (=assets-cash), $m
  9,411
  9,712
  10,041
  10,396
  10,780
  11,191
  11,632
  12,102
  12,603
  13,136
  13,701
  14,300
  14,934
  15,605
  16,314
  17,062
  17,852
  18,685
  19,564
  20,489
  21,463
  22,490
  23,570
  24,707
  25,902
  27,160
  28,483
  29,874
  31,337
  32,874
  34,490
Revenue / Adjusted assets
  3.526
  3.526
  3.526
  3.526
  3.526
  3.526
  3.526
  3.526
  3.526
  3.526
  3.526
  3.526
  3.526
  3.526
  3.526
  3.526
  3.526
  3.526
  3.526
  3.526
  3.526
  3.526
  3.526
  3.526
  3.526
  3.526
  3.526
  3.526
  3.526
  3.526
  3.526
Average production assets, $m
  4,335
  4,486
  4,638
  4,802
  4,979
  5,169
  5,373
  5,590
  5,822
  6,067
  6,329
  6,605
  6,898
  7,208
  7,535
  7,881
  8,246
  8,631
  9,037
  9,464
  9,914
  10,388
  10,887
  11,412
  11,965
  12,546
  13,157
  13,799
  14,475
  15,185
  15,931
Working capital, $m
  2,993
  -479
  -496
  -513
  -532
  -552
  -574
  -597
  -622
  -648
  -676
  -706
  -737
  -770
  -805
  -842
  -881
  -922
  -966
  -1,011
  -1,060
  -1,110
  -1,164
  -1,220
  -1,279
  -1,341
  -1,406
  -1,475
  -1,547
  -1,623
  -1,703
Total debt, $m
  2,404
  2,675
  2,967
  3,284
  3,625
  3,991
  4,383
  4,802
  5,248
  5,722
  6,225
  6,758
  7,322
  7,919
  8,550
  9,217
  9,920
  10,661
  11,443
  12,266
  13,133
  14,047
  15,008
  16,020
  17,084
  18,204
  19,381
  20,619
  21,921
  23,289
  24,727
Total liabilities, $m
  8,373
  8,644
  8,936
  9,253
  9,594
  9,960
  10,352
  10,771
  11,217
  11,691
  12,194
  12,727
  13,291
  13,888
  14,519
  15,186
  15,889
  16,630
  17,412
  18,235
  19,102
  20,016
  20,977
  21,989
  23,053
  24,173
  25,350
  26,588
  27,890
  29,258
  30,696
Total equity, $m
  4,511
  1,068
  1,104
  1,144
  1,186
  1,231
  1,280
  1,331
  1,386
  1,445
  1,507
  1,573
  1,643
  1,717
  1,795
  1,877
  1,964
  2,055
  2,152
  2,254
  2,361
  2,474
  2,593
  2,718
  2,849
  2,988
  3,133
  3,286
  3,447
  3,616
  3,794
Total liabilities and equity, $m
  12,884
  9,712
  10,040
  10,397
  10,780
  11,191
  11,632
  12,102
  12,603
  13,136
  13,701
  14,300
  14,934
  15,605
  16,314
  17,063
  17,853
  18,685
  19,564
  20,489
  21,463
  22,490
  23,570
  24,707
  25,902
  27,161
  28,483
  29,874
  31,337
  32,874
  34,490
Debt-to-equity ratio
  0.533
  2.500
  2.690
  2.870
  3.060
  3.240
  3.430
  3.610
  3.790
  3.960
  4.130
  4.300
  4.460
  4.610
  4.760
  4.910
  5.050
  5.190
  5.320
  5.440
  5.560
  5.680
  5.790
  5.890
  6.000
  6.090
  6.190
  6.270
  6.360
  6.440
  6.520
Adjusted equity ratio
  0.110
  0.110
  0.110
  0.110
  0.110
  0.110
  0.110
  0.110
  0.110
  0.110
  0.110
  0.110
  0.110
  0.110
  0.110
  0.110
  0.110
  0.110
  0.110
  0.110
  0.110
  0.110
  0.110
  0.110
  0.110
  0.110
  0.110
  0.110
  0.110
  0.110
  0.110

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  2,298
  2,937
  3,032
  3,135
  3,245
  3,364
  3,491
  3,627
  3,772
  3,925
  4,088
  4,275
  4,458
  4,651
  4,856
  5,071
  5,299
  5,539
  5,792
  6,059
  6,340
  6,636
  6,947
  7,274
  7,619
  7,982
  8,363
  8,764
  9,185
  9,628
  10,094
Depreciation, amort., depletion, $m
  659
  468
  483
  500
  518
  537
  557
  579
  602
  626
  652
  661
  690
  721
  754
  788
  825
  863
  904
  946
  991
  1,039
  1,089
  1,141
  1,196
  1,255
  1,316
  1,380
  1,447
  1,518
  1,593
Funds from operations, $m
  4,133
  3,405
  3,515
  3,635
  3,763
  3,901
  4,048
  4,206
  4,373
  4,551
  4,741
  4,936
  5,148
  5,372
  5,609
  5,860
  6,124
  6,402
  6,696
  7,005
  7,331
  7,674
  8,036
  8,416
  8,816
  9,236
  9,678
  10,144
  10,632
  11,146
  11,687
Change in working capital, $m
  531
  -15
  -16
  -18
  -19
  -20
  -22
  -23
  -25
  -26
  -28
  -30
  -31
  -33
  -35
  -37
  -39
  -41
  -43
  -46
  -48
  -51
  -53
  -56
  -59
  -62
  -65
  -69
  -72
  -76
  -80
Cash from operations, $m
  3,602
  3,420
  3,532
  3,652
  3,782
  3,921
  4,070
  4,229
  4,398
  4,578
  4,768
  4,965
  5,179
  5,405
  5,644
  5,896
  6,163
  6,443
  6,739
  7,051
  7,379
  7,725
  8,089
  8,472
  8,875
  9,298
  9,744
  10,212
  10,705
  11,222
  11,766
Maintenance CAPEX, $m
  0
  -434
  -449
  -464
  -480
  -498
  -517
  -537
  -559
  -582
  -607
  -633
  -661
  -690
  -721
  -754
  -788
  -825
  -863
  -904
  -946
  -991
  -1,039
  -1,089
  -1,141
  -1,196
  -1,255
  -1,316
  -1,380
  -1,447
  -1,518
New CAPEX, $m
  -1,027
  -151
  -152
  -164
  -177
  -190
  -204
  -217
  -231
  -246
  -261
  -277
  -293
  -310
  -327
  -346
  -365
  -385
  -406
  -427
  -450
  -474
  -499
  -525
  -552
  -581
  -611
  -643
  -676
  -710
  -746
Cash from investing activities, $m
  -1,215
  -585
  -601
  -628
  -657
  -688
  -721
  -754
  -790
  -828
  -868
  -910
  -954
  -1,000
  -1,048
  -1,100
  -1,153
  -1,210
  -1,269
  -1,331
  -1,396
  -1,465
  -1,538
  -1,614
  -1,693
  -1,777
  -1,866
  -1,959
  -2,056
  -2,157
  -2,264
Free cash flow, $m
  2,387
  2,836
  2,931
  3,024
  3,125
  3,233
  3,350
  3,474
  3,608
  3,750
  3,901
  4,056
  4,226
  4,406
  4,596
  4,797
  5,010
  5,234
  5,471
  5,720
  5,983
  6,260
  6,551
  6,858
  7,181
  7,521
  7,878
  8,254
  8,649
  9,065
  9,502
Issuance/(repayment) of debt, $m
  993
  271
  292
  317
  341
  366
  392
  419
  446
  474
  503
  533
  564
  597
  631
  666
  703
  741
  782
  824
  867
  913
  961
  1,012
  1,064
  1,120
  1,177
  1,238
  1,302
  1,368
  1,438
Issuance/(repurchase) of shares, $m
  -1,536
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash from financing (excl. dividends), $m  
  -911
  271
  292
  317
  341
  366
  392
  419
  446
  474
  503
  533
  564
  597
  631
  666
  703
  741
  782
  824
  867
  913
  961
  1,012
  1,064
  1,120
  1,177
  1,238
  1,302
  1,368
  1,438
Total cash flow (excl. dividends), $m
  1,485
  3,107
  3,223
  3,341
  3,466
  3,599
  3,742
  3,893
  4,053
  4,224
  4,404
  4,589
  4,790
  5,003
  5,227
  5,463
  5,713
  5,975
  6,252
  6,544
  6,850
  7,173
  7,513
  7,870
  8,245
  8,640
  9,056
  9,492
  9,951
  10,433
  10,940
Retained Cash Flow (-), $m
  -204
  -30
  -36
  -39
  -42
  -45
  -48
  -52
  -55
  -59
  -62
  -66
  -70
  -74
  -78
  -82
  -87
  -92
  -97
  -102
  -107
  -113
  -119
  -125
  -132
  -138
  -146
  -153
  -161
  -169
  -178
Prev. year cash balance distribution, $m
 
  3,473
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash flow adjustment, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash available for distribution, $m
 
  6,549
  3,187
  3,301
  3,424
  3,554
  3,693
  3,841
  3,998
  4,165
  4,341
  4,523
  4,720
  4,929
  5,149
  5,381
  5,626
  5,884
  6,156
  6,442
  6,743
  7,060
  7,394
  7,745
  8,114
  8,502
  8,910
  9,339
  9,790
  10,264
  10,762
Discount rate, %
 
  4.30
  4.52
  4.74
  4.98
  5.23
  5.49
  5.76
  6.05
  6.35
  6.67
  7.00
  7.35
  7.72
  8.11
  8.51
  8.94
  9.39
  9.86
  10.35
  10.87
  11.41
  11.98
  12.58
  13.21
  13.87
  14.56
  15.29
  16.05
  16.86
  17.70
PV of cash for distribution, $m
 
  6,279
  2,918
  2,873
  2,819
  2,755
  2,680
  2,595
  2,499
  2,393
  2,276
  2,148
  2,014
  1,874
  1,729
  1,580
  1,430
  1,280
  1,134
  992
  857
  730
  613
  508
  413
  331
  260
  200
  151
  112
  81
Current shareholders' claim on cash, %
  100
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0

The TJX Companies, Inc. operates as an off-price apparel and home fashions retailer in the United States and internationally. It operates through four segments: Marmaxx, HomeGoods, TJX Canada, and TJX International. The company sells family apparel, including footwear and accessories; home fashions, such as home basics, accent furniture, lamps, rugs, wall d├ęcor, decorative accessories, and giftware; seasonal items; jewelry; and other merchandise. It operates stores under the T.J. Maxx, Marshalls, HomeGoods, Winners, HomeSense, T.K. Maxx, and Sierra Trading Post names, as well as operates e-commerce sites tjmaxx.com, tkmaxx.com, and sierratradingpost.com. As of July 30, 2016, the company operated a total of 3,675 stores in nine countries, which included the United States, Canada, the United Kingdom, Ireland, Germany, Poland, Austria, the Netherlands, and Australia, as well as through three e-commerce sites. The TJX Companies, Inc. was founded in 1956 and is headquartered in Framingham, Massachusetts.

FINANCIAL RATIOS  of  TJX (TJX)

Valuation Ratios
P/E Ratio 19.4
Price to Sales 1.3
Price to Book 9.9
Price to Tangible Book
Price to Cash Flow 12.4
Price to Free Cash Flow 17.3
Growth Rates
Sales Growth Rate 7.2%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 8.6%
Cap. Spend. - 3 Yr. Gr. Rate 1.6%
Financial Strength
Quick Ratio NaN
Current Ratio 0
LT Debt to Equity 53.3%
Total Debt to Equity 53.3%
Interest Coverage 52
Management Effectiveness
Return On Assets 19.2%
Ret/ On Assets - 3 Yr. Avg. 20.4%
Return On Total Capital 35.6%
Ret/ On T. Cap. - 3 Yr. Avg. 37.5%
Return On Equity 52.1%
Return On Equity - 3 Yr. Avg. 52.5%
Asset Turnover 2.7
Profitability Ratios
Gross Margin 29%
Gross Margin - 3 Yr. Avg. 28.8%
EBITDA Margin 13.4%
EBITDA Margin - 3 Yr. Avg. 14%
Operating Margin 11.3%
Oper. Margin - 3 Yr. Avg. 11.9%
Pre-Tax Margin 11.2%
Pre-Tax Margin - 3 Yr. Avg. 11.7%
Net Profit Margin 6.9%
Net Profit Margin - 3 Yr. Avg. 7.3%
Effective Tax Rate 38.3%
Eff/ Tax Rate - 3 Yr. Avg. 37.9%
Payout Ratio 28.3%

TJX stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the TJX stock intrinsic value calculation we used $33184 million for the last fiscal year's total revenue generated by TJX. The default revenue input number comes from 2017 income statement of TJX. You may change it if you feel that it should be adjusted for some unusual circumstances that are not expected to be repeated in the future or if you already know (from interim financial statements, for example) that this year's revenue is going to be quite different.

Revenue growth rate. Forecasted future revenue growth rate is the most important input parameter for the intrinsic value calculation. Unlike other input parameters that are reasonably expected to be in line with their historic averages or their historic trends, the revenue growth rate by and large is a wild card: nobody really knows what the company's revenue will be in the future. Of course, the level of unpredictability is different for different industries (utility companies being the most predictable and, thus, less risky).
    We use three input parameters to forecast the revenue growth rate in our TJX stock valuation model: a) initial revenue growth rate of 3.2% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 4.3%, whose default value for TJX is calculated based on our internal credit rating of TJX, is applied to the cash flow expected to be received a year from now (well, actually, to be precise, in the financial year following the base year - the last year for which we have financial statements). For each consecutive year the discount rate is multiplied by the discount rate multiplier of 1.05, e.i. each year it increases by 5%. Feel free to change this number to correspond to your level of risk assessment of TJX.
    By the way, it is easy to set the discount rate to be constant (this would make comparison with other valuation models easier): just set the discount rate multiplier equal to 1 and chose the magnitude of the initial discount rate to your liking.

Variable cost ratio is the ratio of variable costs (i.e. costs that fluctuate with fluctuation of the volume of production) to the revenue expressed as a percentage. In the calculation of intrinsic value of TJX stock the variable cost ratio is equal to 88%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $0 million in the base year in the intrinsic value calculation for TJX stock. These expenses increase with the level of inflation in subsequent years.

Interest rate on debt is the average all-in rate of interest paid by the company on its debt. It is set at 3.6% for TJX.

Corporate tax rate of 27% is the nominal tax rate for TJX. In reality, companies find ways to pay much less taxes than that or not to pay them at all.

Cash flow adjustment could be used for any adjustment the investor deems necessary. Most commonly we use this field to account for stock options-related effects in excess of what is reported on the company's income statement. The cash flow adjustment is expressed as a percentage of the revenue, and in the current valuation of the TJX stock is equal to 0%.

Production assets are the company's assets used for manufacturing products or provision of services. In the valuation model input table they are expressed as a percentage of revenue and for TJX are equal to 13.1%.

Life of production assets of 10 years is the average useful life of capital assets used in TJX operations. It is used to calculate yearly capital expenditures needed to keep these assets in good order - we call it the maintenance CAPEX.

Working capital is the difference between the company's current assets and liabilities. In the model we use the ratio of working capital to revenue, which for TJX is equal to -1.4%. A negative number means that the company is apt at using financial resources of its suppliers and customers; a large positive number, on the other hand, means that it either provides in-kind financing to others or is not good at managing its inventories.

Book value of equity - $4511 million for TJX - is used in calculation of the "floor" for intrinsic valuation based on the discounted cash flow (DCF) method. Even if the prospects are very bad for a company, its assets could always be sold now for their current fair market value.

Shares outstanding of 650.478 million for TJX is needed to calculate the intrinsic value of one share.

Market capitalization is used here only for reference purposes and as a quick check that the share price and the number of shares outstanding numbers are correct - something especially to be cognizant about at stock splits. So, the market capitalization of TJX at the current share price and the inputted number of shares is $44.8 billion.

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COMPANY NEWS

▶ Bullish on Amazon.com? You'll Love These 3 Stocks   [Jul-23-17 09:43AM  Motley Fool]
▶ The Bear Is There for TJX   [Jul-18-17 02:35PM  TheStreet.com]
▶ TJX Is Executing Well--And Has Protection From Amazon   [Jul-17-17 11:14AM  Barrons.com]
▶ Retail, oil and autos embolden broader rally   [Jul-13-17 07:04PM  CNBC Videos]
▶ Why Amazon Won't Decimate TJ Maxx   [12:18PM  TheStreet.com]
▶ It's Time to Buy Shares of TJX and Ross Stores   [Jul-12-17 08:35AM  Motley Fool]
▶ The 3 Best Dividend Stocks in Retail   [Jul-11-17 03:32PM  Motley Fool]
▶ Searching for Bottoms at TJX   [01:57PM  TheStreet.com]
▶ 3 Top Stocks in Retail   [Jul-07-17 06:41AM  Motley Fool]
▶ How Ulta Beauty Inc Stands Out From the Crowd   [Jul-03-17 07:03PM  Motley Fool]
▶ Gauging Off-Price Retailers Valuations Today   [09:07AM  Market Realist]
▶ How Have Off-Price Retailers Been Rewarding Investors?   [Jun-29-17 05:11PM  Market Realist]
▶ Is TJX Companies About to Lose Its Golden Touch?   [Jun-28-17 10:42AM  Motley Fool]
▶ 3 Growth Stocks for Daring Investors   [Jun-22-17 11:05AM  Motley Fool]
▶ How T.J. Maxx and Marshalls are bucking the trends in retail   [Jun-21-17 01:50PM  Yahoo Finance Video]
▶ [$$] How T.J. Maxx is Bucking the Crisis in Retailing   [11:41AM  The Wall Street Journal]
▶ 7 Retailers Immune to Amazon's Dominance   [Jun-19-17 05:26PM  Investopedia]
▶ These 6 Retailers Are Actually Thriving   [Jun-13-17 06:00AM  Motley Fool]
▶ The 2 Best Dividend Stocks in Home Goods   [Jun-08-17 04:57PM  Motley Fool]
▶ TJX investors voting on pay equity, diversity proposals   [May-30-17 05:30PM  American City Business Journals]
▶ Ross Stores Breaks Retail's Losing Streak   [May-23-17 09:25AM  Motley Fool]
▶ Where Does TJX Companies Valuation Stand?   [10:36AM  Market Realist]
▶ TJX Companies 1Q18 Operating Margin Fell   [07:38AM  Market Realist]
▶ Retailers Better Off After a Rough Previous Week   [May-19-17 06:31PM  Investopedia]
▶ What Drove TJX Companies 1Q18 Earnings?   [04:06PM  Market Realist]
▶ Morgan Stanley: TJX a Buy After Recent Sell-Off   [May-18-17 12:44PM  Investopedia]
▶ TJX: Selloff Creates "Buying Opportunity"   [12:16PM  Barrons.com]
▶ Can TJX Marshall a Rebound?   [10:50AM  TheStreet.com]
▶ Company News for May 17, 2017   [10:14AM  Zacks]
▶ [$$] TJX Is Dinged by Department Store Crash   [12:24AM  The Wall Street Journal]
▶ Trading the retail earnings wreck   [05:16PM  CNBC Videos]
▶ Retail And E-Commerce News And Stocks To Watch   [04:58PM  Investor's Business Daily]
▶ [$$] TJX Is Dinged by Department Store Crash   [03:55PM  The Wall Street Journal]
▶ T.J. Maxx's Star Fades   [01:58PM  Bloomberg]
Stock chart of TJX Financial statements of TJX Annual reports of TJX
Valuation of Stocks

The paper VALUATION OF STOCKS: The Quest for Intrinsic Value provides a detailed description of our valuation model and discloses the calculation algorithm.

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