TJX Companies - Comparative Multiple Analysis

TJX Companies (Comparative Multiple Analysis)

placeholder_large_analysis.png
Banner%20-%20The%20perfect%20tool%20for%20investors%281%29.gif

Notes on the Comparative Multiple Analysis of TJX Companies

WikiWealth compares TJX Companies's revenue, EBITDA, and EBIT multiples to their peers in order to determine the appropriate fair valuation. Click in the top right corner to experiment with TJX Companies's comparative analysis.

Notes from the analysis:

1. WikiWealth uses quantitative measures to determine the multiple range for TJX Companies.
2. Free cash flow to the firm (FCF) multiple is free cash flow to equity holders plus interest owed to TJX Companies's debt holders.
3. Multiples incorporate benefits due to economies of scale; WikiWealth compares absolute enterprise value multiples to competitor's multiples.
4. WikiWealth excludes outliers when calculating individual company multiples.

Helpful Information for TJX Companies's Analysis


How does this work? The Comparative Investment Analysis determines the value of TJX Companies by comparing TJX Companies financial ratios, prices, growth rates, margins, etc. to those of relevant peer groups.

Value Investing Importance? This method is widely used by investment professionals to determine the correct price of investments, especially initial public offerings (IPOs). It is one element of WikiWealth's three Wall Street approaches used to determine the correct fair value of TJX Companies.

See the TJX Companies cash flow (DCF) analysis for a completely different approach that's popular on Wall Street for determining the value of an investment in TJX Companies.

Also, see the TJX Companies's buffett intrinsic valuation analysis for WikiWealth's attempt to replicate the investing formula's used by Warren Buffett and TJX Companies's valuation conclusion for a quick summary.