The Intrinsic Value of TargetTo determine the value of Target, let’s start by looking at the company’s history of free cash flow. The free cash flow is important because it represents the company’s ability to retain earning and grow the business. Below is a chart of Target’s free cash flow over the past ten years. That’s an interesting result considering the consolidated estimates for free cash flow are contracting in this model. If it results in another 10% over the next 5 years, this will easily be accounted for in the intrinsic value model already discussed.

Source: Forbes August 19, 2017 15:32 UTC