TGTNEUTRAL

EV/EBITDA

9.0x

Updated 320h ago

Sector Performance

25th percentile

TGT

9.0x

Sector Median

13.7x

Sector Avg

18.7x

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Deep Analysis

Target's current EV/EBITDA of 9.0x means that for every dollar of earnings before interest, taxes, depreciation, and amortization (EBITDA), investors are paying $9.00 for the entire enterprise value (market cap plus debt minus cash).

This is well below the sector median of 13.9x, placing the stock in the 24th percentile among sector peers, indicating it trades at a discount relative to most competitors. Over the last eight quarters, the metric has been trending upward, with a year-over-year increase of 14.1% and a nearly flat quarter-over-quarter change of -0.1%. The combination of a low valuation level and an increasing trend could suggest improving earnings power or market sentiment, but the slight quarterly decline tempers momentum, presenting a mixed risk/reward profile. This metric supports the overall NEUTRAL verdict: the low EV/EBITDA suggests a potential value opportunity, while the rising trend and small QoQ slip call for caution, balancing bullish and bearish signals.

Frequently Asked Questions

What does the EV/EBITDA tell investors about TGT?

A valuation multiple preferred by analysts for capital-intensive or leveraged businesses. Useful for cross-sector comparisons where earnings can be distorted by debt.

How is the EV/EBITDA calculated?

EV/EBITDA is calculated as: Enterprise Value / EBITDA.

Who are TGT's closest peers by EV/EBITDA?

The closest peers by EV/EBITDA include: LSPD (-24.2x), BRZE (-24.5x), EVGO (-25.7x), NIO (-36.8x), SNAP (-38.8x).

The Formula

Enterprise Value / EBITDA

Why It Matters

A valuation multiple preferred by analysts for capital-intensive or leveraged businesses. Useful for cross-sector comparisons where earnings can be distorted by debt.