Using the industry peer median P/E multiple (trailing + forward), Tractor Supply Company (TSCO) has a fair value of $36.55 based on 7 comparable companies in the Specialty Retail industry.
USD in millions except Fair Price. Subject company highlighted.
| Mkt Cap ($M) | Trailing P/E | Forward P/E | |
|---|---|---|---|
| Tractor Supply CompanyTSCO | 24,396 | 22.3x | 21.1x |
| eBay Inc.EBAY | 40,355 | 20.6x | 14.7x |
| Expedia Group, Inc.EXPE | 27,371 | 23.8x | 12.2x |
| Rollins, Inc.ROL | 25,455 | 48.5x | 43.1x |
| Ulta Beauty, Inc.ULTA | 23,439 | 20.4x | 18.3x |
| Lennar CorporationLEN | 23,011 | 11.4x | 6.6x |
| Williams-Sonoma, Inc.WSM | 21,539 | 20.4x | 21.4x |
| Best Buy Co., Inc.BBY | 13,220 | 12.5x | 9.7x |
| Industry Median | 20.4x | 14.7x | |
| (*) Profit after tax | 1,096 | 1,158 | |
| Equity Value | 22,371 | 16,531 | |
| (/) Outstanding shares | 532 | 532 | |
| Fair Price | $42 | $31 | |
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.