Financial Analysis of Target Corp. and JCPenney Research Paper

Financial Analysis of Target Corp. and JCPenney - query Paper ExamplePresently, headquarter of the lodge is situated in Minneapolis. The company has been ranked 22nd by the dowry magazine within its list under the category of Worlds Most Admired Companies. overly it has been titled as the 23rd by Forbes magazine within its list under the category of the Statess Most Reputable Companies. There ar many subsidiaries of the Target jackpot Financial and retail Services (FRS), Target Sourcing Services (TSS), Target Commercial Interiors, Target Brands and Target.com. Target had declared its expansion into Canada and has plans to acquaint around 100 to 150 stores over there by the year 2013. The total revenue of the company during the year 2010 was $67.4 billion (My Target, 2010). Background of J. C. Penney Company, Inc J. C Penney Company, Inc., better known as JCPenney is one amongst many queen-size retailers in the Unites States. The company operates with its 1100 departmental sto res situated all around America and Puerto Rico. JCPenney also has sites on the meshwork for its trading in the retail sections of home furnishings and apparels. The company is headquartered in Plano, TX and has 150000 associates. The company offers a wide form of brands inclusive of private brands, national brands and exclusive brands to more than 50 percent of the American people. The company pictured annual revenue of $17.8 billion during the year 2010 (JCPenney, 2010). Calculation of Ratio for Target Corporation and J. C. Penney Company, Inc Ratios Target Corporation (in millions $ except number of shares) J. C. Penney Company, Inc (in millions $ except number of shares) Book Value Per Share Ratio = (Total shareholder right Preferred equity) / Total outstanding shares (15487-0) / 704038218 = 0.000022 (5460-0) / 237000000 = 0.000023 Current ratio = Current asset / Current liabilities 17213 / 10070 = 1.71 6370 / 2647 = 2.41 Net network Margin on Sales = Net Earnings / Sales 2 920 / 67390 = 0.043 389 / 17759 = 0.022 Earnings per Share = (Net income- Dividends on pet stock) Average outstanding shares 2920 / 704038218 = 4.00 (Diluted earnings per share) 389/ 237000000 = 1.64 (Diluted earnings per share) EBITDA per share = EBITDA / Outstanding shares 7336 / 704038218 = 10.4 1343 / 237000000 = 5.67 Debt/Equity Ratio = Long marge debt / Common stock equity 3954 / 3370 = 1.17 3099 / 4043 = 0.77 Interpretation and Description of the Findings From analyzing the adjudge value per share ratio of a company, not many facts can be interpreted. Book value is rather the accounting value of the shares of a company. This value is considerably different from the market value of the shares. Book values are heady on the basis of the companys retained earnings and costs whereas market values are determined on the basis of expectations of investors. On comparing the book value and the market value of the companys shares, inferences can be derived as to whether the companys stock is overvalued or undervalued. The only situation when book value can be useful is when the market value of the companys stock is move than the book value of the stock. This situation seldom arises but if this arises, then the investors anticipate the company to be undervalued and are attracted to buy. The market value of Target Corporation is $51.19 and the book value would be approximately $22. This