Target is one of America’s oldest retail chains as well as a fixture among the top 10 national retail chains, and it maintains a ranking as the world’s 11th-largest retailer. Here’s how Target’s fiscal performance in the last three years has affected its market value.
|What Target Is Worth|
|Target’s Share Price, 52-Week Range||$48.56-$78.70|
|Target’s Market Cap, 52-Week Range||$25.9B-$42B|
|GOBankingRates’ Evaluation of Target’s Net Worth||$62.6B|
|All information on 52-week range is accurate as of June 1, 2018.|
|CEO Brian Cornell’s Salary||$1.3M|
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Target’s Market Cap Range: $25.9B-$42B
Although market cap gives you a clear sense of what the market values a company at, it’s based entirely on market sentiment, which, in turn, is based on a multitude of consumer variables and market players.
Target’s market cap is the combined value of all of its outstanding stock, essentially telling you what investors collectively see the company’s worth as. With a market cap that has remained under $50 billion over the last year, Target is dwarfed by its major competitors like Walmart and Amazon, demonstrating that investors likely see more potential in the future of those companies than Target.
Target’s Net Worth: $62.6B
The GOBankingRates Evaluation of a company’s net worth only considers solid figures like assets and revenue, taking into account full-year profits and revenue from the last three years and the company’s assets and debts.
Based solely on Target’s revenue and profits from the last three years, Target is worth $62.6 billion.
Target faces fierce competition from Walmart and other large retailers. Similarly, the company’s online presence is overshadowed by the likes of Amazon, and Target sometimes misses the mark on investment returns. Target’s strengths seem to lie in its brick-and-mortar stores, with the chain adding nearly 30 small-format stores and remodeling 100 stores in 2017.
Target’s History of Expansion
Target’s history goes all the way back to 1902 when it was first known as Dayton Dry Goods Company, named after founder George Draper Dayton. Ownership changed hands within the Dayton clan, with grandsons Wallace, George II, Kenneth, Donald, Bruce and Douglas eventually assuming leadership roles in the company beginning in 1950. A series of expansions followed soon after, and the culmination of subsequent expansions and partnerships resulted in today’s Target Corporation.
Although its bull’s-eye symbol might be well-known to American shoppers — the company has been using it since 1962 — Target is far less known outside the country compared to other brands. This lack of familiarity is best illustrated by the aborted attempt in 2013 to 2015 to expand into Canada with the now-defunct Target Canada subsidiary.
The loss of potential revenue, and public embarrassment, might help explain Target’s middling performance, but institutional shareholders still have a vested interest, the largest being the financial services company State Street Corporation, which holds almost 50 million shares as of May 2018.
Despite some missteps, the company continues to be one of the largest retailers in the world, offering everything from home goods to groceries. Its partnerships with popular designers such as clothes designer Isaac Mizrahi in the 2000s and HGTV darlings Chip and Joanna Gaines today — who launched their Hearth & Hand with Magnolia home decor line in 2017 — help set Target apart from competitors.
Methodology: The GOBankingRates Evaluation assesses a company’s net worth based on the company’s total assets, total liabilities, and revenue and net income from the last three years. Base value is established by subtracting total liabilities from total assets from the company’s last full fiscal year. Income value is established by taking the average of the revenue from the last three full fiscal years, plus 10 times the average of the net profits from the last three full fiscal years, and then calculating the average of those two figures. The final GOBankingRates Evaluation number is the sum of the base value and the income value.
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