Target Corp., FCFF calculation

US$ in millions

12 months ended:	Feb 3, 2024	Jan 28, 2023	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020	Feb 2, 2019
Net earnings	4,138)	2,780)	6,946)	4,368)	3,281)	2,937)
Net noncash charges	3,444)	3,674)	3,124)	3,099)	2,956)	3,016)
Changes in operating accounts	1,039)	(2,436)	(1,445)	3,058)	862)	17)
Cash provided by operating activities	8,621)	4,018)	8,625)	10,525)	7,099)	5,970)
Interest paid, net of capitalized interest, net of tax¹	473)	365)	323)	740)	384)	375)
Expenditures for property and equipment	(4,806)	(5,528)	(3,544)	(2,649)	(3,027)	(3,516)
Proceeds from disposal of property and equipment	24)	8)	27)	42)	63)	85)
Leased assets obtained in exchange for new finance lease liabilities	(104)	(224)	(288)	(428)	(379)	(130)
Free cash flow to the firm (FCFF)	4,208)	(1,361)	5,143)	8,230)	4,140)	2,784)

Based on: 10-K (reporting date: 2024-02-03), 10-K (reporting date: 2023-01-28), 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01), 10-K (reporting date: 2019-02-02).

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Item	Description	The company
FCFF	Free cash flow to the firm is the cash flow available to the Target Corp. suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made.	Target Corp. FCFF decreased from 2022 to 2023 but then increased from 2023 to 2024 not reaching 2022 level.

Target Corp., interest paid, net of tax calculation

US$ in millions

12 months ended:	Feb 3, 2024	Jan 28, 2023	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020	Feb 2, 2019
Effective Income Tax Rate (EITR)
EITR¹	21.90%	18.70%	22.00%	21.20%	22.00%	21.30%
Interest Paid, Net of Tax
Interest paid, net of capitalized interest, before tax	605)	449)	414)	939)	492)	476)
Less: Interest paid, net of capitalized interest, tax²	132)	84)	91)	199)	108)	101)
Interest paid, net of capitalized interest, net of tax	473)	365)	323)	740)	384)	375)

Based on: 10-K (reporting date: 2024-02-03), 10-K (reporting date: 2023-01-28), 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01), 10-K (reporting date: 2019-02-02).

¹ See details »

² 2024 Calculation
Interest paid, net of capitalized interest, tax = Interest paid, net of capitalized interest × EITR
= 605 × 21.90% = 132

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Target Corp., current EV/FCFF calculation, comparison to benchmarks

Selected Financial Data (US$ in millions)
Enterprise value (EV)	84,098)
Free cash flow to the firm (FCFF)	4,208)
Valuation Ratio
EV/FCFF	19.99
Benchmarks
EV/FCFF, Competitors¹
Costco Wholesale Corp.	62.57
Dollar General Corp.	23.67
Walmart Inc.	42.89
EV/FCFF, Sector
Consumer Staples Distribution & Retail	64.23
EV/FCFF, Industry
Consumer Staples	35.59

Based on: 10-K (reporting date: 2024-02-03).

¹ Click competitor name to see calculations.

If the company EV/FCFF is lower then the EV/FCFF of benchmark then company is relatively undervalued.
Otherwise, if the company EV/FCFF is higher then the EV/FCFF of benchmark then company is relatively overvalued.

Target Corp., historical EV/FCFF calculation, comparison to benchmarks

	Feb 3, 2024	Jan 28, 2023	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020	Feb 2, 2019
Selected Financial Data (US$ in millions)
Enterprise value (EV)¹	89,183)	89,184)	107,691)	93,212)	61,814)	49,539)
Free cash flow to the firm (FCFF)²	4,208)	(1,361)	5,143)	8,230)	4,140)	2,784)
Valuation Ratio
EV/FCFF³	21.20	—	20.94	11.33	14.93	17.80
Benchmarks
EV/FCFF, Competitors⁴
Costco Wholesale Corp.	61.14	36.07	74.47	38.43	26.70	37.24
Dollar General Corp.	40.23	88.52	29.27	16.16	25.20	22.20
Walmart Inc.	30.87	30.99	33.26	14.86	22.39	17.27
EV/FCFF, Sector
Consumer Staples Distribution & Retail	—	41.15	35.19	17.02	22.34	20.10
EV/FCFF, Industry
Consumer Staples	—	27.85	27.96	19.75	21.80	22.08

Based on: 10-K (reporting date: 2024-02-03), 10-K (reporting date: 2023-01-28), 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01), 10-K (reporting date: 2019-02-02).

¹ See details »

² See details »

³ 2024 Calculation
EV/FCFF = EV ÷ FCFF
= 89,183 ÷ 4,208 = 21.20

⁴ Click competitor name to see calculations.

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Target Corp. (NYSE:TGT)

Enterprise Value to FCFF (EV/FCFF)

Free Cash Flow to The Firm (FCFF)

Interest Paid, Net of Tax

Enterprise Value to FCFF Ratio, Current

Enterprise Value to FCFF Ratio, Historical