DG Relative Valuation
DG's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, DG is overvalued; if below, it's undervalued.
Historical Valuation
Dollar General Corp (DG) is now in the Undervalued zone, suggesting that its current forward PE ratio of 16.42 is considered Undervalued compared with the five-year average of 19.45. The fair price of Dollar General Corp (DG) is between 109.08 to 147.68 according to relative valuation methord. Compared to the current price of 103.33 USD , Dollar General Corp is Undervalued By 5.27%.
Relative Value
Fair Zone
109.08-147.68
Current Price：103.33
5.27%
Undervalued
16.42
PE
1Y
3Y
5Y
Trailing
Forward
12.07
EV/EBITDA
Dollar General Corp. (DG) has a current EV/EBITDA of 12.07. The 5-year average EV/EBITDA is 15.11. The thresholds are as follows: Strongly Undervalued below 10.73, Undervalued between 10.73 and 12.92, Fairly Valued between 17.31 and 12.92, Overvalued between 17.31 and 19.50, and Strongly Overvalued above 19.50. The current Forward EV/EBITDA of 12.07 falls within the Undervalued range.
18.68
EV/EBIT
Dollar General Corp. (DG) has a current EV/EBIT of 18.68. The 5-year average EV/EBIT is 19.86. The thresholds are as follows: Strongly Undervalued below 14.91, Undervalued between 14.91 and 17.38, Fairly Valued between 22.33 and 17.38, Overvalued between 22.33 and 24.80, and Strongly Overvalued above 24.80. The current Forward EV/EBIT of 18.68 falls within the Historic Trend Line -Fairly Valued range.
105.65
PS
Dollar General Corp. (DG) has a current PS of 105.65. The 5-year average PS is 2.24. The thresholds are as follows: Strongly Undervalued below -19.74, Undervalued between -19.74 and -8.75, Fairly Valued between 13.23 and -8.75, Overvalued between 13.23 and 24.22, and Strongly Overvalued above 24.22. The current Forward PS of 105.65 falls within the Strongly Overvalued range.
11.70
P/OCF
Dollar General Corp. (DG) has a current P/OCF of 11.70. The 5-year average P/OCF is 13.84. The thresholds are as follows: Strongly Undervalued below 6.48, Undervalued between 6.48 and 10.16, Fairly Valued between 17.52 and 10.16, Overvalued between 17.52 and 21.20, and Strongly Overvalued above 21.20. The current Forward P/OCF of 11.70 falls within the Historic Trend Line -Fairly Valued range.
23.42
P/FCF
Dollar General Corp. (DG) has a current P/FCF of 23.42. The 5-year average P/FCF is 28.37. The thresholds are as follows: Strongly Undervalued below 7.56, Undervalued between 7.56 and 17.96, Fairly Valued between 38.77 and 17.96, Overvalued between 38.77 and 49.18, and Strongly Overvalued above 49.18. The current Forward P/FCF of 23.42 falls within the Historic Trend Line -Fairly Valued range.
Dollar General Corp (DG) has a current Price-to-Book (P/B) ratio of 2.90. Compared to its 3-year average P/B ratio of 4.52 , the current P/B ratio is approximately -35.75% higher. Relative to its 5-year average P/B ratio of 6.02, the current P/B ratio is about -51.81% higher. Dollar General Corp (DG) has a Forward Free Cash Flow (FCF) yield of approximately 0.08%. Compared to its 3-year average FCF yield of 4.51%, the current FCF yield is approximately -98.21% lower. Relative to its 5-year average FCF yield of 4.10% , the current FCF yield is about -98.04% lower.
2.90
P/B
Median3y
4.52
Median5y
6.02
0.08
FCF Yield
Median3y
4.51
Median5y
4.10
Competitors Valuation Multiple
The average P/S ratio for DG's competitors is 119.01, providing a benchmark for relative valuation. Dollar General Corp Corp (DG) exhibits a P/S ratio of 105.65, which is -11.23% above the industry average. Given its robust revenue growth of 5.07%, this premium appears unsustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of DG increased by 35.41% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 15.25 to 19.13.
The secondary factor is the Revenue Growth, contributed 5.07%to the performance.
Overall, the performance of DG in the past 1 year is driven by P/E Change. Which is more unsustainable.
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