TJX — Valuation Models

Interactive models with editable assumptions. All calculations run client-side.

Valuation Summary

Model	Intrinsic Value	vs Price ($159.94)
DCF	$228.44	+42.8%
Graham Number	$30.38	-81.0%
Reverse DCF	—	implied g: 22.1%
DDM	$35.02	-78.1%
EV/EBITDA	$162.04	+1.3%

Values reflect default assumptions. Adjust inputs in each model below to update.

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $3.94B

Near-term growth (yrs 1–5)(%)Rev: 8.5% / EPS: 28.3%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 7.92%

Computed WACC: 7.92%

Cost of equity (Re)8.36%(Rf 4.30% + β 0.74 × ERP 5.50%)

Cost of debt (Rd)2.72%(interest expense ÷ avg debt (SEC))

Tax rate (T)21.00%(US statutory fallback)

Equity weight (E/V)92.96%

Debt weight (D/V)7.04%

Results

Intrinsic Value / share$284.49

Current Price$159.94

Upside / Downside+77.9%

Net Debt (used)$7.26B

Sensitivity: WACC (rows) × Near-term g (cols)

WACC \ Near-term	20.3%	24.3%	28.3%	32.3%	36.3%
7.0%	$257.89	$303.21	$354.64	$412.79	$478.29
8.0%	$203.39	$239.06	$279.52	$325.24	$376.72
9.0%	$166.02	$195.08	$228.03	$265.24	$307.11
10.0%	$138.90	$163.17	$190.68	$221.72	$256.65
11.0%	$118.39	$139.05	$162.45	$188.84	$218.52

2 — Graham Number

Assumptions

MultiplierGraham used 22.5 (15× P/E × 1.5× P/B)

EPS (trailing)($)Yahoo: $4.53

Book Value / share($)Yahoo: $9.06

Results

Graham Number$30.38

Current Price$159.94

Margin of Safety-81.0%

Formula: √(22.5 × max(0,EPS) × max(0,BVPS))

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 7.92%

Terminal growth rate(%)

Computed WACC: 7.92%

Cost of equity (Re)8.36%(Rf 4.30% + β 0.74 × ERP 5.50%)

Cost of debt (Rd)2.72%(interest expense ÷ avg debt (SEC))

Tax rate (T)21.00%(US statutory fallback)

Equity weight (E/V)92.96%

Debt weight (D/V)7.04%

Results

Current Price$159.94

Implied Near-term FCF Growth18.5%

Historical Revenue Growth8.5%

Historical Earnings Growth28.3%

Base FCF (TTM)$3.94B

Implied growth is the FCF growth rate (yrs 1–5) that makes the DCF intrinsic value equal the current price. Long-term growth is set to half the implied near-term rate.

4 — Dividend Discount Model (DDM)

Assumptions

Annual dividend D0($/share)Yahoo: $1.70

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$35.02

Current Price$159.94

Upside / Downside-78.1%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $8.42B

Target EV/EBITDA multipleCurrent: 22.2×

Net Debt($B)Default: $7.26B

Results

Implied Equity Value / share$162.04

Current Price$159.94

Upside / Downside+1.3%

Implied EV$187.20B

Sensitivity: EV/EBITDA multiple (rows) × Net Debt (cols)

Mult \ Net Debt	$3.26B	$5.26B	$7.26B	$9.26B	$11.26B
18.2x	$135.29	$133.49	$131.69	$129.89	$128.09
20.2x	$150.46	$148.66	$146.86	$145.06	$143.26
22.2x	$165.64	$163.84	$162.04	$160.24	$158.43
24.2x	$180.81	$179.01	$177.21	$175.41	$173.61
26.2x	$195.99	$194.19	$192.38	$190.58	$188.78

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