Why is Target so low PE, while Walmart/Costco are so high?
Target has a PE of 15 while its competitors Walmart and Costco has 41 and 55.
Why is the difference so big? 15 vs 40.
Brief-Frosting405:
"Walmart has been executing extremely well lately and their revenue growth has trounced Target’s. Walmart+ is a real competitor to Prime and I believe Walmart is also getting into the advertising space which is a huge growth opportunity.
Costco is like its own thing. I can’t really analyze it because the valuation is so absurd. It is an incredibly good business, but yeah I can’t find a good reason for its valuation.
All of that said, I think Target is a great value right now"
Lovv:
"Personally I think Costco is high because people walk into Costco and think, damn I like this buisness.
They don't think about profits, losses etc. It's just that they like Costco.
I get it. I like Costco and I invested in it before I came here and got more understanding of their numbers.
Same with tesla."
What's your opinion?![]()
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