Is The TJX Companies, Inc. (TJX) Fairly Valued?
The TJX Companies, Inc. valuation review using P/E, fair value, revenue growth, EPS growth, net margin, and TGMCharts chart exhibits as of July 10, 2026.
By TGMCharts Research · Data as of · Updated
The TJX Companies, Inc. requires multi-dimensional analysis rather than a single-metric judgment. The equity is valued at 29.39x of trailing net income, while the independent analyst DCF reference is established at $98.98, indicating that the market price is above this valuation benchmark.
The core evidence is the relationship between price, earnings, fair value, and business support. Five-year revenue CAGR is 13.44%, five-year EPS CAGR is 130.62%, and net margin is 9.40%. Those facts decide whether the multiple is defensible or stretched.
- The TJX Companies, Inc. closed at $151 on July 10, 2026.
- Trailing P/E is 29.39x and price-to-sales is 2.75x.
- Analyst DCF (FMP) is $98.98 with margin of safety at -34.59%.
- Five-year revenue CAGR is 13.44% and five-year EPS CAGR is 130.62%.
- Earnings yield is 3.40% and net margin is 9.40%.
Valuation Setup
The market price, model anchor, growth support, and profitability facts behind the valuation read.
Evaluating the Earnings Multiple and Market Price Premium
When assessing The TJX Companies, Inc., fundamental analysts must determine if the current market price is backed by sufficient operational momentum to justify its valuation multiple. At the close on July 10, 2026, the equity traded at $151, which places its trailing earnings multiple at 29.39x. This pricing creates a negative margin of safety of -34.59% when measured against the independent analyst-DCF reference point.
Evaluating this business requires looking beyond a single ratio. By examining the trailing price-to-earnings ratio, the third-party fair value estimate, the price-to-sales ratio, the earnings yield, and long-term expansion metrics together, we can see whether the company's financial performance supports its market valuation or if the price has outrun the underlying fundamentals.
Market Pricing and Sales Multiples in Context
Before deciding if the current valuation is sustainable, we must analyze the premium the market demands for the business. Investors are currently paying 2.75x times sales, which corresponds to an earnings yield of 3.40%. This relationship is detailed in our first set of exhibits, which plot historical price-to-earnings and price-to-sales trends to show how the current valuation compares to historical norms.
TJX P/E ratio Chart
The trailing earnings multiple is the main valuation exhibit because it connects the market price to reported earnings.
Latest P/E ratio: 29.39x as of July 10, 2026.
A P/E ratio of 29.39x has to be judged against the company's five-year EPS CAGR of 130.62%. If the multiple is high while EPS support is ordinary, the valuation thesis becomes more dependent on investor confidence than on fresh earnings power.
TJX price-to-sales Chart
Price-to-sales gives a second valuation lens when margins and earnings can move around the cycle.
Latest price-to-sales ratio: 2.75x.
Price-to-sales at 2.75x is most useful beside net margin of 9.40%. A richer sales multiple is easier to defend when margin quality is durable rather than temporarily elevated.
The Analyst DCF Reference and Margin of Safety
The third-party analyst DCF model serves as an external benchmark for the stock's current price. This independent model calculates a fair value of $98.98, placing the market price of $151 above the DCF estimate and resulting in a margin of safety of -34.59%. This calculation is a reference point rather than an absolute valuation; alternative scenario models on our platform may yield different results.
The valuation at a glance
Each input on its own line: what the stock costs against earnings and sales, the model's fair value and how far price sits from it, and the growth and margins behind the business.
TJX earnings yield Chart
Earnings yield reframes valuation from an owner's-yield perspective rather than a multiple perspective.
Latest earnings yield: 3.40%.
The earnings yield of 3.40% is the counterweight to the P/E ratio. If the yield is thin relative to the quality and growth profile, the valuation case needs more help from future compounding.
Aligning Revenue and EPS Trends with the Multiple
To support its premium multiple, the business must deliver consistent growth on both the top and bottom lines. Over the past five years, revenue has grown at a compound annual rate of 13.44%, while diluted earnings per share have risen at a CAGR of 130.62%. These growth rates help determine if the current valuation is backed by operational expansion or if it relies on multiple expansion.
TJX revenue
Revenue history tests whether the valuation is being supported by real business expansion.
Five-year revenue CAGR: 13.44%. This is endpoint-to-endpoint from the fiscal years shown — a depressed start year can inflate it, so read it against the recent bars.
Revenue growth is the business-expansion evidence behind the valuation read. A five-year revenue CAGR of 13.44% helps show how much of the valuation story is coming from company growth instead of only multiple expansion.
TJX EPS
EPS history checks whether reported earnings are keeping pace with the market multiple.
Five-year EPS CAGR: 130.62%. This is endpoint-to-endpoint from the fiscal years shown — a depressed or negative start year can inflate it, so read it against the recent bars.
A five-year EPS CAGR of 130.62% is the clearest support figure for a P/E-based conclusion. If EPS growth slows while the multiple remains elevated, the article should become more cautious after refresh.
Profitability Quality as a Valuation Defense
Operating efficiency is key to sustaining a high sales multiple. With a net profit margin of 9.40% and a price-to-sales ratio of 2.75x, we can evaluate how effectively sales are converted into profits. High profit margins make a premium valuation easier to defend, but if margins peak, the stock could face pressure if operating costs rise.
TJX net margin
Net margin shows whether the company has enough profitability quality to support its valuation.
Net margin (TTM): 9.40%. The bars below are annual fiscal years.
Net margin of 9.40% is a quality signal, not a valuation verdict by itself. It matters because a premium multiple is more defensible when margins are structurally strong and less defensible when margins are peaking.
Weighing the Bull and Bear Arguments
The optimistic view is that the company's five-year revenue CAGR of 13.44% and EPS CAGR of 130.62% will continue to support its current valuation. Conversely, the cautious view suggests that the trailing P/E of 29.39x and the negative margin of safety of -34.59% leave little room for error if growth slows or margins contract.
Bull and bear case
Valuation support
- Five-year revenue CAGR of 13.44% and five-year EPS CAGR of 130.62% support the business case.
- Net margin of 9.40% is the quality check behind the multiple.
Valuation pressure
- A P/E ratio of 29.39x can become demanding if EPS growth slows.
- The analyst-DCF (FMP) margin of safety at -34.59% should change the valuation read if it deteriorates after refresh.
Key Metrics That Could Shift the Outlook
This valuation assessment would change if the analyst DCF fair value is adjusted, or if the market price moves closer to the fair value estimate of $98.98. Additionally, a significant change in the five-year revenue or EPS growth trends would alter this view. We update our analysis daily to ensure it remains aligned with reported financial data.
A Balanced View of the Fundamental Data
In conclusion, the valuation of The TJX Companies, Inc. depends on several factors: its market multiple, the independent DCF benchmark, and its growth and margin trends. This analysis is based on verified financial data from public filings and is intended for informational purposes only, rather than as personalized financial advice.
FAQ
Is TJX fairly valued?
The TJX Companies, Inc. trades at 29.39x trailing earnings with an analyst-DCF (FMP) margin of safety of -34.59%. The cleanest read comes from comparing that valuation to five-year revenue CAGR of 13.44% and five-year EPS CAGR of 130.62%.
What valuation metric matters most for TJX?
This article anchors on P/E, fair value, margin of safety, price-to-sales, earnings yield, revenue growth, and EPS growth. No single metric is treated as a recommendation.
How often should this TJX valuation view refresh?
We refresh this note after each daily market close, so the price, fair value, and every figure stay current. Numbers here are as of July 10, 2026.
What would change our mind
- A material move away from the analyst-DCF (FMP) reference of $98.98.
- A break in five-year EPS support, currently 130.62%.
- Margin quality drifting away from the latest net margin of 9.40%.
The bottom line
The TJX Companies, Inc. valuation research note from TGMCharts Research, grounded in precomputed fundamentals, chart exhibits, and a frozen claim ledger.
Read next: TJX fundamentalsContinue with The TJX Companies, Inc.'s full stock page.How we checked this researchShowHide
Data snapshot · By TGMCharts Research.
Every number in this note comes from data we compute and store ourselves from the company's reported figures, plus verbatim excerpts from its SEC filings. When a value isn't available we say so — we never fill gaps with estimates.
Latest filing excerpt
10-Q · filed 2026-05-29 · period 2026-05-02 · SEC EDGAR source
- “As of May 2, 2026, both the number of stores in operation and the selling square footage increased approximately 3% compared to the end of the first quarter of fiscal 2026.”
- “Comp sales increased 6% and 3% for the first quarter of fiscal 2027 and fiscal 2026, respectively.”
- “As of May 2, 2026, both our store count and selling square footage increased approximately 3% compared to the end of the first quarter last year.”
- “Segment Profit Margin Segment profit margin increased to 14.7% for the first quarter of fiscal 2027 compared to 13.7% for the same period last year.”
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Every number, checked
Every numeric or dated claim in this note was checked against our stored company data before publishing — each figure below links to the page it comes from.