We learn about using price multiples to evaluate a stock. In this discussion, collect the industry average price multiples and Target Corp.'s financial to compute the stock value based on the price multiples.

Stock Value = Industry P/E * Company EPS

Stock Value = Industry Market-to-book * Company Book Value per Share

Stock Value = Industry Price-to-Sales * Company Sales per Share

Based on your findings, comment on the current price being too high, too low, or just right.

Industry price ratios are available on MSN Money, under Analysis/Price Ratios.

The information I have:

For 2022: (From Yahoo Finance)

Revenue: $93,561 Million

Net Income: $4,368 Million

(Book) Equity: $53.811 Million

Number of shares outstanding: $461.56 Million

Then I need to obtain industry average price ratios from MSN Money.

Industry P/E:

Industry Price/Sales:

Industry Price/Book:

Now I am ready to compute the expected stock price:

• Expected Price based on P/E= industry P/E * EPS =
• Expected Price based on industry price/sales= Industry price/sales * sales per share =
• Expected Price based on Price/book= Industry price /book *Book Equity per share=

The current stock price is ____ which is ____ the expected price based on the P/E, Price/Sales, and Price/Book ratios, therefore I can conclude that the stock is currently _____-priced.