1. Is the company undervalued?
EV/EBIT: 10.9
EV/Sales: 0.82
Price/Book: 6.62
Tarjay is the #1 big box retailer for middle class women across the United States. The company is also extremely durable with a 120-year history. Notwithstanding
$TGT just reported a huge miss and investors are worried this could be a precursor for more pain ahead.
However Target is priced quite reasonably and returning a sizeable amount of capital back to shareholders. Additionally topline growth remains strong, so if profitability concerns abate investors could hit a bullseye by buying at today’s prices!
Link to full writeup here: