Using the industry peer median P/E multiple (trailing + forward), The TJX Companies, Inc. (TJX) has a fair value of $123.78 based on 6 comparable companies in the Apparel - Retail industry.
USD in millions except Fair Price. Subject company highlighted.
| Mkt Cap ($M) | Trailing P/E | Forward P/E | |
|---|---|---|---|
| The TJX Companies, Inc.TJX | 178,751 | 32.6x | 33.9x |
| McDonald's CorporationMCD | 221,367 | 26.0x | 23.5x |
| Booking Holdings Inc.BKNG | 135,358 | 25.4x | 15.6x |
| Lowe's Companies, Inc.LOW | 132,177 | 19.9x | 18.7x |
| O'Reilly Automotive, Inc.ORLY | 78,257 | 31.2x | 28.7x |
| NIKE, Inc.NKE | 76,965 | 24.1x | 33.6x |
| Ross Stores, Inc.ROST | 70,190 | 32.7x | 33.1x |
| Industry Median | 25.7x | 26.1x | |
| (*) Profit after tax | 5,494 | 5,269 | |
| Equity Value | 140,980 | 137,514 | |
| (/) Outstanding shares | 1,125 | 1,125 | |
| Fair Price | $125 | $122 | |
This P/E relative valuation uses the industry peer median Price-to-Earnings ratio to estimate fair value. Both trailing (last 12 months) and forward (next fiscal year analyst estimates) P/E multiples are computed independently.
The industry median trailing P/E is applied to the company's TTM net income, and the forward P/E to analyst-estimated net income. Each produces an equity value divided by shares outstanding to yield a fair price per share. The selected fair value is the average of the trailing and forward legs.