Is Target Corp. overvalued or undervalued?

As of 7 July 2025, the valuation grade for Target Corp. has moved from fair to attractive, indicating a more favorable assessment of its stock. The company appears to be undervalued, supported by a P/E ratio of 10, an EV to EBITDA of 6.45, and a Price to Book Value of 2.96. In comparison to peers, Target Corp.'s P/E ratio is significantly lower than Tractor Supply Co.'s 32.73, which is considered expensive, and also lower than Casey's General Stores, Inc.'s fair valuation of 35.28.
Despite the attractive valuation, Target Corp. has underperformed compared to the S&P 500, with a year-to-date return of -33.85% versus the S&P 500's 12.22%. This stark contrast in returns over multiple periods reinforces the notion that the stock may be undervalued relative to its current price and market sentiment.