DG Valuation

Dollar General Corp

Add to Watchlist

Advanced Chart

108.760

-2.95(-2.641%)1D

Overview
Forecast
Valuation
Earnings

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 17.03 is considered Undervalued compared with the five-year average of 19.71. The fair price of Dollar General Corp (DG) is between 113.26 to 152.07 according to relative valuation methord. Compared to the current price of 108.76 USD , Dollar General Corp is Undervalued By 3.97%.

Relative Value

Fair Zone

113.26-152.07

Current Price：108.76

3.97%

Undervalued

17.03

Trailing

Forward

12.38

EV/EBITDA

Dollar General Corp. (DG) has a current EV/EBITDA of 12.38. The 5-year average EV/EBITDA is 15.26. The thresholds are as follows: Strongly Undervalued below 10.98, Undervalued between 10.98 and 13.12, Fairly Valued between 17.40 and 13.12, Overvalued between 17.40 and 19.54, and Strongly Overvalued above 19.54. The current Forward EV/EBITDA of 12.38 falls within the Undervalued range.

19.17

EV/EBIT

Dollar General Corp. (DG) has a current EV/EBIT of 19.17. The 5-year average EV/EBIT is 19.88. The thresholds are as follows: Strongly Undervalued below 15.00, Undervalued between 15.00 and 17.44, Fairly Valued between 22.33 and 17.44, Overvalued between 22.33 and 24.77, and Strongly Overvalued above 24.77. The current Forward EV/EBIT of 19.17 falls within the Historic Trend Line -Fairly Valued range.

0.55

Dollar General Corp. (DG) has a current PS of 0.55. The 5-year average PS is 1.06. The thresholds are as follows: Strongly Undervalued below 0.22, Undervalued between 0.22 and 0.64, Fairly Valued between 1.48 and 0.64, Overvalued between 1.48 and 1.90, and Strongly Overvalued above 1.90. The current Forward PS of 0.55 falls within the Undervalued range.

12.20

P/OCF

Dollar General Corp. (DG) has a current P/OCF of 12.20. The 5-year average P/OCF is 14.13. The thresholds are as follows: Strongly Undervalued below 6.55, Undervalued between 6.55 and 10.34, Fairly Valued between 17.91 and 10.34, Overvalued between 17.91 and 21.70, and Strongly Overvalued above 21.70. The current Forward P/OCF of 12.20 falls within the Historic Trend Line -Fairly Valued range.

24.42

P/FCF

Dollar General Corp. (DG) has a current P/FCF of 24.42. The 5-year average P/FCF is 29.40. The thresholds are as follows: Strongly Undervalued below 6.82, Undervalued between 6.82 and 18.11, Fairly Valued between 40.69 and 18.11, Overvalued between 40.69 and 51.98, and Strongly Overvalued above 51.98. The current Forward P/FCF of 24.42 falls within the Historic Trend Line -Fairly Valued range.

Dollar General Corp (DG) has a current Price-to-Book (P/B) ratio of 2.99. Compared to its 3-year average P/B ratio of 4.97 , the current P/B ratio is approximately -39.89% higher. Relative to its 5-year average P/B ratio of 6.21, the current P/B ratio is about -51.93% higher. Dollar General Corp (DG) has a Forward Free Cash Flow (FCF) yield of approximately 7.73%. Compared to its 3-year average FCF yield of 4.06%, the current FCF yield is approximately 90.32% lower. Relative to its 5-year average FCF yield of 4.01% , the current FCF yield is about 92.80% lower.

2.99

P/B

Median3y

4.97

Median5y

6.21

7.73

FCF Yield

Median3y

4.06

Median5y

4.01

Competitors Valuation Multiple

The average P/S ratio for DG's competitors is 1.14, providing a benchmark for relative valuation. Dollar General Corp Corp (DG) exhibits a P/S ratio of 0.55, which is -51.72% 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

Market capitalization of DG increased by 31.37% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 16.59 to 20.13.

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.

5.07%

10.21B → 10.73B

Revenue Growth

4.92%

3.66 → 3.84

Margin Expansion

21.38%

16.59 → 20.13

P/E Change

31.37%