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

As of 17 October 2025, the valuation grade for The TJX Cos., Inc. moved from expensive to fair, indicating a more favorable assessment of its stock price. The company appears fairly valued based on its current metrics, with a P/E ratio of 29, a Price to Book Value of 16.85, and an EV to EBITDA ratio of 19.25. In comparison, peer Ross Stores, Inc. has a P/E of 29.21 and an EV to EBITDA of 20.04, suggesting that TJX is competitively priced within its industry.
The company's strong performance is further highlighted by its impressive return on equity (ROE) of 57.23% and return on capital employed (ROCE) of 72.06%. Notably, The TJX Cos., Inc. has outperformed the S&P 500 over various timeframes, with a year-to-date return of 19.06% compared to the S&P 500's 13.30%, reinforcing the attractiveness of its valuation.