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.
Why don't Target just copy Costco's business model of membership fee if it's are doing so well?
If Walmart & Costco are doing well on oversea business, do you think Target can do the same?
Do you think Target is undervalued and is a buy now given its historical Revenue/Earnings are quite solid?
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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李白的李 : Target does not have overseas business.