TJX Companies Inc (TJX) is overvalued and Urban Outfitters Inc (URBN) is undervalued.
Against our estimates of intrinsic value, URBN trades at the wider discount: a margin of safety of +38%, against -56% for TJX.
Values as of the 22 Sept 2026 close.
Discounting its cash flows at 8.4% (average of 3 methods) values the shares at $83.94; the price of $130.79 is 56% above that value, and 78% of that value comes from beyond year five.
Leak Score 62/100 on 10 of 12 signals
Discounting its cash flows at 9.9% (average of 3 methods) values the shares at $120.84; the price of $75.02 is 38% below that value, and 73% of that value comes from beyond year five.
Leak Score 100/100 on 3 of 12 signals
| Metric | TJX | URBN |
|---|---|---|
| Verdict | Overvalued | Undervalued |
| Price | $130.79 | $75.02 |
| Intrinsic value | $83.94 | $120.84 |
| Margin of safety | -56% | +38% |
| Leak Score | 62/100 (10/12) | 100/100 (3/12) |
| Market cap | $143.9B | $6.4B |
| Revenue growth, 5 years | 13.4% | 12.3% |
| Operating margin | 12.4% | 11.3% |
| Net margin | 9.7% | 8.8% |
| Return on equity | 62.2% | 20.9% |
| Debt to equity | 1.34 | 0.43 |
| P/E | 24.2x | 11.7x |
| Forward P/E | 22.6x | 10.9x |
| P/B | 13.5x | 2.3x |
| Dividend yield | 1.4% | — |