Tractor Supply

Methodology

Tractor Supply's fair value calculation works well given the company's consistent earnings growth driven by new store openings and comparable store sales gains in rural and suburban markets. The method captures Tractor Supply's position as a defensive retailer serving non-discretionary needs in agriculture, pet care, and land maintenance with predictable margins. Fair value estimates are reliable because the business model emphasizes steady expansion in underserved markets rather than volatile same-store sales swings.

Methodology

Tractor Supply typically commands moderate to premium PEG ratios reflecting its consistent growth profile and defensive positioning in essential rural retail categories. The PEG framework works well for Tractor Supply because growth rates are steady and driven by unit expansion plus low-single-digit comps, creating predictable earnings progression. Comparing Tractor Supply's PEG to other specialty retailers highlights the premium investors place on consistent execution and resilient end-market demand.

Methodology

Tractor Supply pays a modest dividend, so PEGY adds incremental value by incorporating the company's steady cash returns alongside growth. However, the primary investment thesis centers on consistent earnings growth from store expansion rather than income generation. For total-return investors, PEGY captures both Tractor Supply's reliable growth trajectory and its commitment to returning cash through modest but growing dividends.