TJX Companies

Methodology

TJX's fair value calculation works well given the company's consistent earnings growth driven by store expansion and comparable store sales gains across its off-price retail banners. The method captures TJX's ability to deliver steady growth through economic cycles by capitalizing on brand overproduction and retail disruption. Fair value estimates are reliable for TJX since the off-price model provides predictable margins and the company avoids inventory risk through opportunistic buying.

Methodology

TJX typically trades at moderate PEG ratios reflecting its consistent growth profile and recession-resistant off-price business model that performs well across economic environments. The PEG framework is particularly useful for TJX because growth rates are steady and predictable, driven by unit expansion and market share gains rather than volatile same-store sales swings. Comparing TJX's PEG to traditional retailers highlights the premium investors place on the defensive, consistent nature of off-price retail.

Methodology

TJX pays a modest dividend, so PEGY adds incremental value to standard PEG analysis by incorporating the company's steady cash returns alongside growth. However, the primary investment thesis centers on consistent earnings growth rather than income, making PEG the more relevant metric. For total-return investors, PEGY captures both TJX's reliable growth and its commitment to returning cash through dividends.