The Financial Analysis of Target
Financial Analysis and Valuation for Target Inc.
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CONTENTS:
1. Financial Highlights of Target Business………………………………….
2. Target Financial Analysis…………………………………………………
3. Valuation Models………………………………………………………
4. Corporate Finance Strategy……………………………………………….
5. Investment Recommendations…………………………………………….
6. The Impact and Implication of Financial Crisis on Target’s Financial Performance ………………………………………………….
7. Conclusions …………………………………………………
1. Financial Highlights of Target Business Target Corporation was incorporated in Minnesota in 1902. Target operates large-format general merchandise discount stores in the United States, which include Target and SuperTarget stores. Target Corporation offers both everyday essentials and fashionable, differentiated merchandise at exceptional prices. It has a strong supply chain and technology network and operates as a single business segment. Target’s credit card operation represents an integral component of the core retail business. Through the branded proprietary credit (or REDcard) products, Target strengthens the bond with the guests, drive sales and contribute to earnings. Target also operates Target.com, an online business. The online business is small relative to the overall size, but is growing at a much more rapid annual pace than the stores. Target is in the industry of Discount, Variety Stores. Its market capital is 39.7B. Its largest competitor, Walmart and Costco, have market capital of 196.7B and 26.9B, respectively. The rest companies in the same industry such as Dollar General Corporation, Dollar Tree, and Bit Lots Inc. take only 10% of the total market capital. Target Corporation has stably growing revenue. In 2009,2008,2007,2006, the revenue increased by 12.88%, 6.2%, 2.3%, and 0.87%, respectively. The Earning Per Share is $3.31,$2.87, $3.37, $3.23, $2.73,$2.09 respectively. The Dividend Per Share is $0.67, $0.62,$0.54,$0.46,
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CONTENTS:
1. Financial Highlights of Target Business………………………………….
2. Target Financial Analysis…………………………………………………
3. Valuation Models………………………………………………………
4. Corporate Finance Strategy……………………………………………….
5. Investment Recommendations…………………………………………….
6. The Impact and Implication of Financial Crisis on Target’s Financial Performance ………………………………………………….
7. Conclusions …………………………………………………
1. Financial Highlights of Target Business Target Corporation was incorporated in Minnesota in 1902. Target operates large-format general merchandise discount stores in the United States, which include Target and SuperTarget stores. Target Corporation offers both everyday essentials and fashionable, differentiated merchandise at exceptional prices. It has a strong supply chain and technology network and operates as a single business segment. Target’s credit card operation represents an integral component of the core retail business. Through the branded proprietary credit (or REDcard) products, Target strengthens the bond with the guests, drive sales and contribute to earnings. Target also operates Target.com, an online business. The online business is small relative to the overall size, but is growing at a much more rapid annual pace than the stores. Target is in the industry of Discount, Variety Stores. Its market capital is 39.7B. Its largest competitor, Walmart and Costco, have market capital of 196.7B and 26.9B, respectively. The rest companies in the same industry such as Dollar General Corporation, Dollar Tree, and Bit Lots Inc. take only 10% of the total market capital. Target Corporation has stably growing revenue. In 2009,2008,2007,2006, the revenue increased by 12.88%, 6.2%, 2.3%, and 0.87%, respectively. The Earning Per Share is $3.31,$2.87, $3.37, $3.23, $2.73,$2.09 respectively. The Dividend Per Share is $0.67, $0.62,$0.54,$0.46,
References: Finance.yahoo.com Http://www.reuters.com/article/idUSN1336407420070913) Http://e-articles.info/e/a/title/Methods-for-Discounting-Cash-Flows-and-Residual-Income R. A. Brealey, S. C. Myers and F. Allen, Principles of Corporate Finance, McGraw- Hill/Irwin, 2011 T. Koller, M. Goedhart, and D. Wessels, Valuation: Measuring and Managing The Value of Companies, Wiley, 2010 www.target.com www.quickmba.com ----------------------- [pic]