Is The TJX Cos., Inc. overvalued or undervalued?

As of 21 May 2025, the valuation grade for The TJX Cos., Inc. has moved from very expensive to expensive, indicating a shift in market perception. The company is currently considered overvalued. Key ratios include a P/E ratio of 29, a Price to Book Value of 16.85, and an EV to EBITDA of 19.25, which are significantly higher than its peers. For instance, Ross Stores, Inc. has a P/E of 24.64 and an EV to EBITDA of 16.28, highlighting the premium at which TJX is trading.
In comparison to the industry, The TJX Cos., Inc. has a PEG ratio of 4.76, suggesting that its growth prospects may not justify its current valuation. While the company has shown strong returns, outperforming the S&P 500 over the past year with a return of 12.39% compared to 10.26%, the elevated valuation metrics indicate that investors may be paying too much for future growth.