Intrinsic value of Target - TGT

Previous Close

$77.21

  Intrinsic Value

$81.40

stock screener

  Rating & Target

hold

+5%

Previous close

$77.21

 
Intrinsic value

$81.40

 
Up/down potential

+5%

 
Rating

hold

We calculate the intrinsic value of TGT 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 2018), $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 42.2

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
   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
   2048

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  3.40
  3.56
  3.70
  3.83
  3.95
  4.06
  4.15
  4.23
  4.31
  4.38
  4.44
  4.50
  4.55
  4.59
  4.63
  4.67
  4.70
  4.73
  4.76
  4.78
  4.81
  4.82
  4.84
  4.86
  4.87
  4.89
  4.90
  4.91
  4.92
  4.92
Revenue, $m
  74,323
  76,969
  79,820
  82,880
  86,154
  89,647
  93,367
  97,321
  101,517
  105,964
  110,671
  115,649
  120,908
  126,462
  132,322
  138,502
  145,017
  151,881
  159,110
  166,722
  174,733
  183,164
  192,034
  201,363
  211,174
  221,491
  232,336
  243,737
  255,720
  268,313
Variable operating expenses, $m
  68,972
  71,427
  74,073
  76,912
  79,951
  83,193
  86,645
  90,314
  94,208
  98,334
  102,702
  107,322
  112,203
  117,357
  122,795
  128,530
  134,576
  140,945
  147,654
  154,718
  162,153
  169,976
  178,207
  186,865
  195,970
  205,543
  215,608
  226,188
  237,308
  248,994
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
  68,972
  71,427
  74,073
  76,912
  79,951
  83,193
  86,645
  90,314
  94,208
  98,334
  102,702
  107,322
  112,203
  117,357
  122,795
  128,530
  134,576
  140,945
  147,654
  154,718
  162,153
  169,976
  178,207
  186,865
  195,970
  205,543
  215,608
  226,188
  237,308
  248,994
Operating income, $m
  5,351
  5,542
  5,747
  5,967
  6,203
  6,455
  6,722
  7,007
  7,309
  7,629
  7,968
  8,327
  8,705
  9,105
  9,527
  9,972
  10,441
  10,935
  11,456
  12,004
  12,581
  13,188
  13,826
  14,498
  15,205
  15,947
  16,728
  17,549
  18,412
  19,319
EBITDA, $m
  7,923
  8,205
  8,509
  8,835
  9,184
  9,556
  9,953
  10,374
  10,822
  11,296
  11,797
  12,328
  12,889
  13,481
  14,106
  14,764
  15,459
  16,190
  16,961
  17,773
  18,627
  19,525
  20,471
  21,465
  22,511
  23,611
  24,767
  25,982
  27,260
  28,602
Interest expense (income), $m
  999
  637
  689
  744
  804
  868
  936
  1,009
  1,087
  1,169
  1,257
  1,350
  1,448
  1,552
  1,662
  1,778
  1,901
  2,030
  2,166
  2,309
  2,460
  2,619
  2,786
  2,963
  3,148
  3,343
  3,548
  3,763
  3,990
  4,228
  4,478
Earnings before tax, $m
  4,714
  4,853
  5,003
  5,164
  5,335
  5,519
  5,713
  5,920
  6,140
  6,372
  6,618
  6,878
  7,153
  7,443
  7,749
  8,072
  8,412
  8,770
  9,147
  9,544
  9,962
  10,401
  10,864
  11,350
  11,862
  12,400
  12,965
  13,559
  14,184
  14,840
Tax expense, $m
  1,273
  1,310
  1,351
  1,394
  1,441
  1,490
  1,543
  1,598
  1,658
  1,721
  1,787
  1,857
  1,931
  2,010
  2,092
  2,179
  2,271
  2,368
  2,470
  2,577
  2,690
  2,808
  2,933
  3,065
  3,203
  3,348
  3,501
  3,661
  3,830
  4,007
Net income, $m
  3,441
  3,543
  3,652
  3,769
  3,895
  4,029
  4,171
  4,322
  4,482
  4,652
  4,831
  5,021
  5,222
  5,434
  5,657
  5,892
  6,140
  6,402
  6,677
  6,967
  7,272
  7,593
  7,931
  8,286
  8,659
  9,052
  9,464
  9,898
  10,354
  10,833

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $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 assets, $m
  40,327
  41,763
  43,310
  44,970
  46,746
  48,642
  50,661
  52,806
  55,082
  57,495
  60,049
  62,750
  65,604
  68,617
  71,797
  75,151
  78,685
  82,410
  86,332
  90,462
  94,809
  99,384
  104,196
  109,258
  114,582
  120,179
  126,064
  132,250
  138,752
  145,585
Adjusted assets (=assets-cash), $m
  40,327
  41,763
  43,310
  44,970
  46,746
  48,642
  50,661
  52,806
  55,082
  57,495
  60,049
  62,750
  65,604
  68,617
  71,797
  75,151
  78,685
  82,410
  86,332
  90,462
  94,809
  99,384
  104,196
  109,258
  114,582
  120,179
  126,064
  132,250
  138,752
  145,585
Revenue / Adjusted assets
  1.843
  1.843
  1.843
  1.843
  1.843
  1.843
  1.843
  1.843
  1.843
  1.843
  1.843
  1.843
  1.843
  1.843
  1.843
  1.843
  1.843
  1.843
  1.843
  1.843
  1.843
  1.843
  1.843
  1.843
  1.843
  1.843
  1.843
  1.843
  1.843
  1.843
Average production assets, $m
  25,716
  26,631
  27,618
  28,676
  29,809
  31,018
  32,305
  33,673
  35,125
  36,663
  38,292
  40,014
  41,834
  43,756
  45,783
  47,922
  50,176
  52,551
  55,052
  57,686
  60,458
  63,375
  66,444
  69,672
  73,066
  76,636
  80,388
  84,333
  88,479
  92,836
Working capital, $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 debt, $m
  12,526
  13,531
  14,614
  15,776
  17,019
  18,346
  19,759
  21,261
  22,855
  24,544
  26,331
  28,222
  30,220
  32,329
  34,555
  36,902
  39,377
  41,984
  44,729
  47,620
  50,663
  53,866
  57,234
  60,778
  64,504
  68,423
  72,542
  76,872
  81,423
  86,206
Total liabilities, $m
  28,229
  29,234
  30,317
  31,479
  32,722
  34,049
  35,462
  36,964
  38,558
  40,247
  42,034
  43,925
  45,923
  48,032
  50,258
  52,605
  55,080
  57,687
  60,432
  63,323
  66,366
  69,569
  72,937
  76,481
  80,207
  84,126
  88,245
  92,575
  97,126
  101,909
Total equity, $m
  12,098
  12,529
  12,993
  13,491
  14,024
  14,593
  15,198
  15,842
  16,525
  17,249
  18,015
  18,825
  19,681
  20,585
  21,539
  22,545
  23,606
  24,723
  25,900
  27,139
  28,443
  29,815
  31,259
  32,778
  34,375
  36,054
  37,819
  39,675
  41,626
  43,675
Total liabilities and equity, $m
  40,327
  41,763
  43,310
  44,970
  46,746
  48,642
  50,660
  52,806
  55,083
  57,496
  60,049
  62,750
  65,604
  68,617
  71,797
  75,150
  78,686
  82,410
  86,332
  90,462
  94,809
  99,384
  104,196
  109,259
  114,582
  120,180
  126,064
  132,250
  138,752
  145,584
Debt-to-equity ratio
  1.040
  1.080
  1.120
  1.170
  1.210
  1.260
  1.300
  1.340
  1.380
  1.420
  1.460
  1.500
  1.540
  1.570
  1.600
  1.640
  1.670
  1.700
  1.730
  1.750
  1.780
  1.810
  1.830
  1.850
  1.880
  1.900
  1.920
  1.940
  1.960
  1.970
Adjusted equity ratio
  0.300
  0.300
  0.300
  0.300
  0.300
  0.300
  0.300
  0.300
  0.300
  0.300
  0.300
  0.300
  0.300
  0.300
  0.300
  0.300
  0.300
  0.300
  0.300
  0.300
  0.300
  0.300
  0.300
  0.300
  0.300
  0.300
  0.300
  0.300
  0.300
  0.300

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  3,441
  3,543
  3,652
  3,769
  3,895
  4,029
  4,171
  4,322
  4,482
  4,652
  4,831
  5,021
  5,222
  5,434
  5,657
  5,892
  6,140
  6,402
  6,677
  6,967
  7,272
  7,593
  7,931
  8,286
  8,659
  9,052
  9,464
  9,898
  10,354
  10,833
Depreciation, amort., depletion, $m
  2,572
  2,663
  2,762
  2,868
  2,981
  3,102
  3,231
  3,367
  3,512
  3,666
  3,829
  4,001
  4,183
  4,376
  4,578
  4,792
  5,018
  5,255
  5,505
  5,769
  6,046
  6,337
  6,644
  6,967
  7,307
  7,664
  8,039
  8,433
  8,848
  9,284
Funds from operations, $m
  6,013
  6,206
  6,414
  6,637
  6,876
  7,130
  7,401
  7,689
  7,995
  8,318
  8,661
  9,023
  9,405
  9,809
  10,235
  10,684
  11,158
  11,657
  12,182
  12,736
  13,318
  13,930
  14,575
  15,253
  15,966
  16,715
  17,503
  18,332
  19,202
  20,117
Change in working capital, $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 from operations, $m
  6,013
  6,206
  6,414
  6,637
  6,876
  7,130
  7,401
  7,689
  7,995
  8,318
  8,661
  9,023
  9,405
  9,809
  10,235
  10,684
  11,158
  11,657
  12,182
  12,736
  13,318
  13,930
  14,575
  15,253
  15,966
  16,715
  17,503
  18,332
  19,202
  20,117
Maintenance CAPEX, $m
  -2,484
  -2,572
  -2,663
  -2,762
  -2,868
  -2,981
  -3,102
  -3,231
  -3,367
  -3,512
  -3,666
  -3,829
  -4,001
  -4,183
  -4,376
  -4,578
  -4,792
  -5,018
  -5,255
  -5,505
  -5,769
  -6,046
  -6,337
  -6,644
  -6,967
  -7,307
  -7,664
  -8,039
  -8,433
  -8,848
New CAPEX, $m
  -878
  -915
  -986
  -1,059
  -1,133
  -1,209
  -1,287
  -1,368
  -1,452
  -1,539
  -1,629
  -1,722
  -1,820
  -1,922
  -2,028
  -2,138
  -2,254
  -2,375
  -2,501
  -2,634
  -2,772
  -2,917
  -3,069
  -3,228
  -3,395
  -3,569
  -3,753
  -3,945
  -4,146
  -4,357
Cash from investing activities, $m
  -3,362
  -3,487
  -3,649
  -3,821
  -4,001
  -4,190
  -4,389
  -4,599
  -4,819
  -5,051
  -5,295
  -5,551
  -5,821
  -6,105
  -6,404
  -6,716
  -7,046
  -7,393
  -7,756
  -8,139
  -8,541
  -8,963
  -9,406
  -9,872
  -10,362
  -10,876
  -11,417
  -11,984
  -12,579
  -13,205
Free cash flow, $m
  2,651
  2,719
  2,764
  2,817
  2,875
  2,941
  3,012
  3,091
  3,176
  3,267
  3,366
  3,471
  3,584
  3,704
  3,832
  3,968
  4,112
  4,264
  4,426
  4,597
  4,777
  4,968
  5,169
  5,381
  5,604
  5,839
  6,087
  6,348
  6,623
  6,912
Issuance/(repayment) of debt, $m
  939
  1,005
  1,083
  1,162
  1,243
  1,327
  1,413
  1,502
  1,594
  1,689
  1,788
  1,891
  1,998
  2,109
  2,226
  2,347
  2,474
  2,607
  2,746
  2,891
  3,043
  3,202
  3,369
  3,543
  3,726
  3,918
  4,119
  4,330
  4,551
  4,783
Issuance/(repurchase) of shares, $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 from financing (excl. dividends), $m  
  939
  1,005
  1,083
  1,162
  1,243
  1,327
  1,413
  1,502
  1,594
  1,689
  1,788
  1,891
  1,998
  2,109
  2,226
  2,347
  2,474
  2,607
  2,746
  2,891
  3,043
  3,202
  3,369
  3,543
  3,726
  3,918
  4,119
  4,330
  4,551
  4,783
Total cash flow (excl. dividends), $m
  3,590
  3,724
  3,847
  3,979
  4,119
  4,268
  4,425
  4,592
  4,769
  4,956
  5,153
  5,362
  5,582
  5,813
  6,058
  6,315
  6,586
  6,871
  7,172
  7,488
  7,820
  8,170
  8,537
  8,924
  9,330
  9,757
  10,206
  10,678
  11,174
  11,695
Retained Cash Flow (-), $m
  -389
  -431
  -464
  -498
  -533
  -569
  -606
  -644
  -683
  -724
  -766
  -810
  -856
  -904
  -954
  -1,006
  -1,060
  -1,117
  -1,177
  -1,239
  -1,304
  -1,372
  -1,444
  -1,519
  -1,597
  -1,679
  -1,765
  -1,856
  -1,951
  -2,050
Prev. year cash balance distribution, $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 flow adjustment, $m
  144
  149
  154
  160
  166
  172
  179
  187
  195
  203
  212
  221
  231
  242
  253
  265
  277
  290
  304
  318
  333
  349
  366
  384
  403
  422
  443
  465
  487
  511
Cash available for distribution, $m
  3,201
  3,293
  3,383
  3,481
  3,586
  3,699
  3,820
  3,949
  4,086
  4,232
  4,387
  4,552
  4,725
  4,909
  5,104
  5,309
  5,526
  5,754
  5,995
  6,249
  6,516
  6,797
  7,094
  7,405
  7,733
  8,078
  8,441
  8,822
  9,223
  9,645
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
  3,069
  3,015
  2,944
  2,866
  2,780
  2,684
  2,581
  2,468
  2,347
  2,219
  2,083
  1,942
  1,797
  1,648
  1,498
  1,349
  1,202
  1,060
  923
  794
  674
  564
  465
  377
  301
  236
  181
  136
  101
  73
Current shareholders' claim on cash, %
  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

Target Corporation (Target) is a general merchandise retailer selling products through its stores and digital channels. Its general merchandise stores offer an edited food assortment, including perishables, dry grocery, dairy and frozen items. Its digital channels include a range of general merchandise, including a range of items found in its stores, along with an assortment, such as additional sizes and colors sold only online. Its owned brands include Archer Farms, Market Pantry, Sutton & Dodge, Art Class, Merona, Threshold, Ava & Viv, Pillowfort, Room Essentials, Wine Cube, Cat & Jack, Simply Balanced and Wondershop. Its exclusive brands include C9 by Champion, Hand Made Modern, Mossimo, DENIZEN from Levi's, Nate Berkus for Target, Fieldcrest, Kid Made Modern, Genuine Kids from OshKosh and Liz Lange for Target. As of January 28, 2017, the Company had 1,802 stores across the United States, including 1,535 owned stores, 107 leased stores and 160 owned buildings on leased land.

FINANCIAL RATIOS  of  Target (TGT)

Valuation Ratios
P/E Ratio 15.7
Price to Sales 0.6
Price to Book 3.9
Price to Tangible Book
Price to Cash Flow 7.9
Price to Free Cash Flow 11
Growth Rates
Sales Growth Rate -5.8%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 7.6%
Cap. Spend. - 3 Yr. Gr. Rate -3.9%
Financial Strength
Quick Ratio 1
Current Ratio 0
LT Debt to Equity 100.7%
Total Debt to Equity 116.4%
Interest Coverage 5
Management Effectiveness
Return On Assets 8.8%
Ret/ On Assets - 3 Yr. Avg. 5.2%
Return On Total Capital 11.1%
Ret/ On T. Cap. - 3 Yr. Avg. 6%
Return On Equity 22.9%
Return On Equity - 3 Yr. Avg. 12.3%
Asset Turnover 1.8
Profitability Ratios
Gross Margin 29.7%
Gross Margin - 3 Yr. Avg. 29.5%
EBITDA Margin 10.4%
EBITDA Margin - 3 Yr. Avg. 10%
Operating Margin 7.2%
Oper. Margin - 3 Yr. Avg. 7%
Pre-Tax Margin 5.7%
Pre-Tax Margin - 3 Yr. Avg. 5.8%
Net Profit Margin 3.9%
Net Profit Margin - 3 Yr. Avg. 2.1%
Effective Tax Rate 32.7%
Eff/ Tax Rate - 3 Yr. Avg. 32.7%
Payout Ratio 49.3%

TGT stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the TGT stock intrinsic value calculation we used $71879 million for the last fiscal year's total revenue generated by Target. The default revenue input number comes from 2018 income statement of Target. 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 TGT stock valuation model: a) initial revenue growth rate of 3.4% 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 TGT is calculated based on our internal credit rating of Target, 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 Target.
    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 TGT stock the variable cost ratio is equal to 92.8%.

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 TGT 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 5.5% for Target.

Corporate tax rate of 27% is the nominal tax rate for Target. 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 TGT stock is equal to 0.2%.

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 TGT are equal to 34.6%.

Life of production assets of 10 years is the average useful life of capital assets used in Target 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 TGT is equal to 0%. 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 - $11709 million for Target - 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 547 million for Target 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 Target at the current share price and the inputted number of shares is $42.2 billion.

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COMPANY NEWS

▶ Amazon Prime Day 2018 tops previous record   [Jul-18-18 11:12AM  CNBC Videos]
▶ Greycroft: 'Our most successful investments werent in NYC or LA'   [09:45AM  American City Business Journals]
▶ Amazon 'Prime Day' turns out pretty good for Target, too   [08:18AM  American City Business Journals]
▶ First look: Target unveils new urban-format store in downtown Denver (Photos)   [Jul-17-18 07:10PM  American City Business Journals]
▶ Amazon shoppers report Prime Day problems with the website and app   [07:23AM  American City Business Journals]
▶ 3 Reasons to Be Hopeful of a Target Stock Turnaround   [Jul-15-18 12:00PM  Motley Fool]
▶ Better Buy: Costco Wholesale Corporation vs. Target   [Jul-14-18 03:00PM  Motley Fool]
▶ [$$] Activists can keep check while CEOs build sandcastles   [Jul-13-18 11:00PM  Financial Times]
▶ Here is what is in (and what isn't in) the new OSU Target   [10:31AM  American City Business Journals]
▶ Target site sales aimed at teachers, Prime Day shoppers   [08:51AM  American City Business Journals]
▶ Target tries to one-up Amazon's Prime Day with its own day-long sale   [08:18AM  American City Business Journals]
▶ Once a Target critic, local apparel maker gets its day in Fenway store   [05:58AM  American City Business Journals]
▶ Stay Away from Dead Money Walmart, Says Analyst   [Jul-12-18 01:42PM  Investopedia]
▶ Shipt unveils plan to keep HQ in Birmingham, add 881 jobs   [01:07PM  American City Business Journals]
▶ 10 Fast-Growing Stocks With Monster Catalysts This Summer   [Jul-11-18 03:18PM  InvestorPlace]
▶ SA retail market continues to tighten despite big-box store closings   [12:42PM  American City Business Journals]
▶ The scoop on Target's answer to Halo Top   [09:21AM  American City Business Journals]
▶ Target to open first Cape Cod store next year   [02:39PM  American City Business Journals]
▶ 7 things to know today and Snapchat brings AR to Disney, Universal   [07:07AM  American City Business Journals]
▶ Why Target's Stock Can Soar 20% Higher   [Jul-03-18 11:43AM  Investopedia]
▶ Yahoo Finance Live: Market Movers - Jul 3rd, 2018   [07:20AM  Yahoo Finance Video]
▶ Best Buy to stop selling CDs - keeps vinyl   [Jul-02-18 01:42PM  Yahoo Finance Video]
▶ Yahoo Finance Live: Midday Movers - Jul 2nd, 2018   [09:40AM  Yahoo Finance Video]
▶ [$$] Target, Walmart Automate More Store Tasks   [Jul-01-18 07:51PM  The Wall Street Journal]
▶ [$$] Target, Walmart Automate More Store Tasks   [10:00AM  The Wall Street Journal]
▶ Target: Still on Point   [Jun-29-18 02:19PM  Barrons.com]
▶ Google Tests Same-Day Delivery   [08:48AM  Investopedia]
▶ Yahoo Finance Live: Market Movers - Jun 28th, 2018   [07:20AM  Yahoo Finance Video]
▶ Target Has a Lot of Ground to Make Up in E-Commerce   [Jun-26-18 03:31PM  Motley Fool]
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