TJX Companies operates as an off-price apparel and home fashions retailer in the United States and internationally, selling family apparel, footwear and accessories, home fashions, giftware, and other merchandise. The company was founded in 1956 and is based in Framingham, Massachusetts.
TJX Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for TJX, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Tjx Companies Inc ranked in the 23th percentile in terms of potential gain offered. We should note, though, that the most conservative analysis suggests this stock will yield negative results -- and thus may be a potential short opportunity. In terms of the factors that were most noteworthy in this DCF analysis for TJX, they are:
The company has produced more trailing twelve month cash flow than 94.61% of its sector Consumer Cyclical.
Tjx Companies Inc's weighted average cost of capital (WACC) is 8%; for context, that number is higher than merely 19.96% of tickers in our DCF set.
TJX's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than merely 19.96% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
BXG, FTDR, JW.A, LB, and RH can be thought of as valuation peers to TJX, in the sense that they are in the Consumer Cyclical sector and have a similar price forecast based on DCF valuation.
TJX Companies (TJX) is still recovering from the disruption of COVID-19. The company's outlook for Q3 still highlights a decline in open-only comp-store sales between a range of minus 10% to 20%. The lackluster sales outlook is mostly driven by the uncertainty in the current environment and the impact on...
Source: Barron's Shelter-in-place policies employed to combat the spread of COVID-19 have led to millions of Americans being stuck at home. Most shopping has taken place online, if at all. That has put off-price retailers like TJX Companies (TJX) and Ross Stores (ROST) at a disadvantage; off-price retailers are known...
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