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  4. Vol 4, Issue 1, 2022

TJX’S Stock Valuation: a Comparison between DDM and DCF

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DOI: 10.23977/jsoce.2022.040104 | Downloads: 22 | Views: 1011

Author(s)

Maike Ge 1

Affiliation(s)

1 Brandeis University, Waltham, Ma 02453, U.S.A

Corresponding Author

Maike Ge

ABSTRACT

TJX, the leading off-price retailer worldwide, has been overperforming in the American stock market compared to other competitors for many years; however, whether investors should increase or reduce positions post COVID-19 is still under debate. This paper aims to find the company's most recent intrinsic value. Specifically, it values the company's stock with the Gordan Growth Model and Discount Free Cash Flow Method respectively. The two methods jointly suggest that the TJX's stock has been relatively overvalued.

KEYWORDS

Stock valuation, TJX, Dividend discount model, Fcff method

CITE THIS PAPER

Maike Ge, TJX'S Stock Valuation: a Comparison between DDM and DCF. Journal of Sociology and Ethnology (2022) Vol. 4: 16-22. DOI: http://dx.doi.org/10.23977/jsoce.2022.040104.

REFERENCES

[1] The TJX Companies Inc. (2021). Form 10-K 2020, [online] Available: https://investor.tjx.com/sec-filings/sec-filing/10-k/0000109198-21-000006.
[2] Macrotrends. (2021). TJX Gross Margin 2006-2021: TJX, [online] Available: https://www.macrotrends.net/stocks/charts/TJX/tjx/gross-margin.
[3] Ali, F., & Davis, D. (2021). US ecommerce grows 44.0% in 2020. Digital Commerce 360, [online] Available: https://www.digitalcommerce360.com/article/us-ecommerce-sales.
[4] Scheid, B. (2020). S&P 500 returns to halve in coming decade – Goldman Sachs. S&P Global, [online] Available: https://www.spglobal.com/marketintelligence/en/news-insights/latest-news-headlines/s-p-500-returns-to-halve-in-coming-decade-8211-goldman-sachs-59439981.
[5] Dybek, M. (2021). Income Taxes. Stock Analysis on Net,[online] Available: https://www.stock-analysis-on.net/NYSE/Company/TJX-Cos-Inc/Analysis/Income-Taxes#EITR.

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