Latest Ratios: P/E Ratio 16.0x · EV/EBITDA 9.3x · ROE 24.0%. (1996–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $59.2B | $48.1B | $63.7B | $67.3B | $78.3B | $107.2B | $91.6B | $57.1B | $37.9B | $40.2B | $37.1B |
| Enterprise Value | $74.0B | $62.9B | $78.8B | $83.2B | $95.2B | $117.8B | $98.2B | $71.8B | $49.8B | $51.0B | $47.3B |
| P/E Ratio → | 16.03 | 12.97 | 15.57 | 16.27 | 28.18 | 15.44 | 20.97 | 17.41 | 12.92 | 13.79 | 13.55 |
| P/S Ratio | 0.56 | 0.46 | 0.60 | 0.63 | 0.72 | 1.01 | 0.98 | 0.73 | 0.50 | 0.55 | 0.53 |
| P/B Ratio | 3.67 | 2.97 | 4.34 | 5.01 | 6.97 | 8.36 | 6.34 | 4.83 | 3.36 | 3.45 | 3.39 |
| P/FCF | 20.87 | 16.95 | 14.23 | 17.65 | — | 21.11 | 11.63 | 13.96 | 15.44 | 9.15 | 9.54 |
| P/OCF | 9.02 | 7.32 | 8.64 | 7.81 | 19.49 | 12.43 | 8.70 | 8.02 | 6.35 | 5.80 | 6.83 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 0.60 | 0.74 | 0.77 | 0.87 | 1.11 | 1.05 | 0.92 | 0.66 | 0.70 | 0.67 |
| EV / EBITDA | 9.27 | 7.88 | 9.22 | 9.78 | 14.53 | 10.17 | 10.88 | 9.89 | 7.57 | 7.61 | 6.59 |
| EV / EBIT | 15.28 | 12.98 | 13.89 | 14.34 | 24.42 | 12.63 | 15.05 | 15.40 | 12.05 | 11.91 | 9.56 |
| EV / FCF | — | 22.17 | 17.60 | 21.80 | — | 23.18 | 12.46 | 17.57 | 20.28 | 11.62 | 12.17 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 25.4% | 25.4% | 28.2% | 27.5% | 24.6% | 29.3% | 29.3% | 29.8% | 29.3% | 29.7% | 30.1% |
| Operating Margin | 4.6% | 4.6% | 5.2% | 5.3% | 3.5% | 8.4% | 7.0% | 6.0% | 5.5% | 5.8% | 6.9% |
| Net Profit Margin | 3.5% | 3.5% | 3.8% | 3.9% | 2.5% | 6.6% | 4.7% | 4.2% | 3.9% | 4.0% | 3.9% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 24.0% | 24.0% | 29.1% | 33.6% | 23.1% | 50.9% | 33.3% | 28.4% | 25.6% | 25.8% | 22.9% |
| ROA | 6.3% | 6.3% | 7.2% | 7.6% | 5.2% | 13.2% | 9.3% | 7.8% | 7.2% | 7.5% | 7.0% |
| ROIC | 12.0% | 12.0% | 14.1% | 14.9% | 11.2% | 30.2% | 20.6% | 14.0% | 13.5% | 14.5% | 17.0% |
| ROCE | 12.9% | 12.9% | 15.2% | 16.3% | 11.7% | 28.3% | 22.0% | 17.1% | 15.4% | 16.3% | 18.6% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 1.26 | 1.26 | 1.36 | 1.46 | 1.70 | 1.28 | 1.05 | 1.31 | 1.19 | 1.16 | 1.16 |
| Debt / EBITDA | 2.54 | 2.54 | 2.33 | 2.31 | 2.91 | 1.42 | 1.67 | 2.14 | 2.04 | 2.01 | 1.78 |
| Net Debt / Equity | — | 0.92 | 1.03 | 1.18 | 1.50 | 0.82 | 0.46 | 1.25 | 1.05 | 0.93 | 0.93 |
| Net Debt / EBITDA | 1.86 | 1.86 | 1.77 | 1.86 | 2.57 | 0.91 | 0.73 | 2.03 | 1.81 | 1.62 | 1.43 |
| Debt / FCF | — | 5.22 | 3.38 | 4.15 | — | 2.08 | 0.84 | 3.61 | 4.84 | 2.47 | 2.63 |
| Interest Coverage | 10.35 | 10.35 | 13.80 | 11.55 | 8.15 | 22.16 | 6.68 | 9.78 | 8.97 | 6.56 | 5.00 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 0.94 | 0.94 | 0.94 | 0.91 | 0.92 | 0.99 | 1.03 | 0.89 | 0.83 | 0.96 | 0.94 |
| Quick Ratio | 0.36 | 0.36 | 0.32 | 0.29 | 0.22 | 0.35 | 0.50 | 0.27 | 0.20 | 0.30 | 0.29 |
| Cash Ratio | 0.26 | 0.26 | 0.23 | 0.20 | 0.11 | 0.27 | 0.42 | 0.18 | 0.10 | 0.20 | 0.20 |
| Asset Turnover | — | 1.76 | 1.84 | 1.94 | 2.05 | 1.97 | 1.83 | 1.83 | 1.83 | 1.80 | 1.88 |
| Inventory Turnover | 6.35 | 6.35 | 6.00 | 6.55 | 6.10 | 5.39 | 6.21 | 6.10 | 5.61 | 5.95 | 5.91 |
| Days Sales Outstanding | — | 6.29 | 5.28 | 4.77 | 5.67 | 4.66 | 4.43 | 4.50 | 5.33 | 4.66 | 3.89 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 3.5% | 4.3% | 3.2% | 3.0% | 2.3% | 1.4% | 1.5% | 2.3% | 3.5% | 3.3% | 3.6% |
| Payout Ratio | 55.4% | 55.4% | 50.0% | 48.6% | 66.0% | 22.3% | 30.7% | 40.5% | 45.5% | 45.9% | 49.3% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 6.2% | 7.7% | 6.4% | 6.1% | 3.5% | 6.5% | 4.8% | 5.7% | 7.7% | 7.3% | 7.4% |
| FCF Yield | 4.8% | 5.9% | 7.0% | 5.7% | — | 4.7% | 8.6% | 7.2% | 6.5% | 10.9% | 10.5% |
| Buyback Yield | 0.7% | 0.8% | 1.6% | 0.2% | 3.4% | 6.7% | 0.8% | 2.7% | 5.6% | 2.6% | 10.0% |
| Total Shareholder Yield | 4.1% | 5.1% | 4.8% | 3.2% | 5.7% | 8.1% | 2.3% | 5.1% | 9.1% | 5.9% | 13.6% |
| Shares Outstanding | — | $456M | $462M | $463M | $465M | $493M | $505M | $516M | $533M | $551M | $583M |
Discretionary spending volatility
According to recent market data, Target's forward P/E of 16.71 suggests a valuation discount relative to broader retail peers, likely reflecting investor skepticism regarding the company's ability to sustain high-margin discretionary sales in an environment where consumer spending is increasingly shifting toward lower-margin essential goods.
The current P/E multiple appears to price in a conservative growth outlook, potentially underestimating the long-term value of the store-as-hub fulfillment model. Investors should monitor whether this valuation gap narrows as the company stabilizes its inventory levels and improves its digital profitability.
As reported in financial statements, Target's ROIC has struggled to maintain momentum, fluctuating between 2.2% and 4.7% over the last ten quarters, which indicates that the company is currently failing to generate returns that consistently exceed its cost of capital in a challenging retail landscape.
The decline in ROIC appears driven by both margin compression and the high capital intensity of maintaining a large physical store footprint. This trend warrants further investigation into whether recent store remodel investments are yielding the expected incremental traffic and basket size improvements.
Based on reported figures, Target's days inventory outstanding has fluctuated between 54 and 69 days over the past ten quarters, highlighting significant operational challenges in aligning inventory procurement with shifting consumer demand patterns and the resulting need for aggressive promotional markdowns to clear excess stock.
The variability in the cash conversion cycle suggests that the company's inventory management remains a primary source of operational friction. This inefficiency likely contributes to the observed volatility in free cash flow, as capital remains tied up in slow-moving discretionary merchandise for extended periods.
As indicated by recent balance sheet filings, Target's current ratio has consistently hovered near 0.94, suggesting a limited margin of safety for meeting short-term obligations and potentially constraining the company's ability to navigate unexpected supply chain disruptions or sudden shifts in consumer spending behavior.
The reliance on a quick ratio that frequently dips below 0.30 underscores a high dependence on inventory turnover to generate the liquidity required for daily operations. This liquidity profile appears vulnerable to any sustained downturn in foot traffic or unexpected spikes in operational costs.
Market participants often misapply the P/E ratio to Target, failing to account for the significant impact of vendor income and inventory shrink adjustments on reported net income, which can obscure the underlying cash-generating capability of the business model compared to its retail peers.
Investors should instead prioritize free cash flow yield and operating margin trends, as these metrics provide a more accurate reflection of the company's ability to fund dividends and capital expenditures. Relying solely on P/E may lead to an incomplete assessment of the company's true earning power.
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Quick answers to the most common questions about buying TGT stock.
Target Corporation's current P/E ratio is 16.0x. The historical average is 18.4x. This places it at the 48th percentile of its historical range.
Target Corporation's current EV/EBITDA is 9.3x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 12.2x.
Target Corporation's return on equity (ROE) is 24.0%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 21.3%.
Based on historical data, Target Corporation is trading at a P/E of 16.0x. This is at the 48th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Target Corporation's current dividend yield is 3.46% with a payout ratio of 55.4%.
Target Corporation has 25.4% gross margin and 4.6% operating margin.
Target Corporation's Debt/EBITDA ratio is 2.5x, indicating moderate leverage. A ratio between 2-4x is manageable but warrants monitoring.