Is Target Corp. overvalued or undervalued?

As of 4 February 2025, Target Corp. has moved from a fair to attractive valuation grade. The company is currently considered undervalued. Key ratios include a P/E ratio of 10, an EV to EBITDA of 6.45, and a dividend yield of 351.91%.
In comparison to its peers, Target's P/E ratio of 10.23 is significantly lower than Walmart's 35.54 and Costco's 55.28, indicating a more favorable valuation relative to these competitors. Additionally, Target's EV to EBITDA ratio of 6.33 is also more attractive compared to the industry averages. Despite recent stock performance lagging behind the S&P 500, with a year-to-date return of -28.59% versus the S&P 500's 2.44%, the current valuation metrics suggest that Target Corp. presents a compelling investment opportunity.