Is Target (TGT) worth $177.21?

Skeptics will wonder if Target (TGT) is overpriced because Mr. Market paid $177.21 for it on 28 March 2024.

Thus, Mr. Market paid almost as much for Target (NYSE: TGT) as for Amazon (AMZN). Amazon shares were trading at $180.38 on 28 March 2024.

This is dumb because Target had $55.36 billion in total assets in February 2024. In contrast, Amazon (AMZN) had $527.85 billion in total assets in December 2023. Moreover, Amazon’s total assets grew by 14.09% from $462.68 billion in December 2022 in 2023.

Meanwhile, Target’s total assets grew by 3.79% from $53.49 billion in January 2023. Thus, Target’s value is around one tenth that of Amazon. Yet, Mr. Market pays the same price for it. Plus, Target’s asset growth rate is about one fourth that of Amazon.

How Much Cash Does Target (TGT) Generate?

Target (TGT) generates less cash. Its quarterly cash from operations fell by -5.11% in 2023 to $3.29 billion in February 2024.

However, Target’s quarterly free cash flow grew by 6.22% in 2023 to $1.86 billion in February 2024. Google Finance estimates Target’s net change in cash grew by 48.63% from $1.28 billion January 2023 to $1.86 billion in February 2024. Notably, Target’s cash and short-term investments grew by 70.70% in 2023 to $3.81 billion in…