Is The TJX Companies Inc (TJX) overvalued?
On Equity Rank's model estimate, TJX trades 20% above its fair value. The TJX Companies Inc (TJX) last closed at $135.30; the multi-method model fair value is $113.07.
| Price | Model fair value | Price vs model |
|---|---|---|
| $135.30 | $113.07 | 20% above |
What the answer rests on
- 2 of 10 valuation methods put TJX's value above its price and 8 put it below, so the methods mostly agree.
- To justify today's price, TJX's free cash flow would need to grow about 8.1% a year for ten years (a reverse discounted cash flow). Over the last three years it actually grew 23.2% a year.
- Over the past year the price sat below the model fair value on 27% of trading days. The gap ranged from 8% below to 260% above the model fair value.
Read this before relying on it
The model fair value is an estimate from published financial statements. It is not a forecast of where the price goes, and it can be wrong. Within 10% either side we call it close to fair value: valuation models are not precise enough to read more into a smaller gap. Our own lists have no proven edge over the market yet; the live record shows every result, misses included.
Every valuation method behind TJX's fair value · What prices assume · Other companies