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 Fair zone, suggesting that its current forward PE ratio of 19.36 is considered Fairly compared with the five-year average of 19.38. The fair price of Dollar General Corp (DG) is between 116.08 to 155.81 according to relative valuation methord.
Relative Value
Fair Zone
116.08-155.81
Current Price：125.29
Fair
19.36
PE
1Y
3Y
5Y
Trailing
Forward
12.52
EV/EBITDA
Dollar General Corp. (DG) has a current EV/EBITDA of 12.52. The 5-year average EV/EBITDA is 15.01. The thresholds are as follows: Strongly Undervalued below 10.56, Undervalued between 10.56 and 12.79, Fairly Valued between 17.23 and 12.79, Overvalued between 17.23 and 19.46, and Strongly Overvalued above 19.46. The current Forward EV/EBITDA of 12.52 falls within the Undervalued range.
19.14
EV/EBIT
Dollar General Corp. (DG) has a current EV/EBIT of 19.14. The 5-year average EV/EBIT is 19.82. The thresholds are as follows: Strongly Undervalued below 14.89, Undervalued between 14.89 and 17.36, Fairly Valued between 22.28 and 17.36, Overvalued between 22.28 and 24.74, and Strongly Overvalued above 24.74. The current Forward EV/EBIT of 19.14 falls within the Historic Trend Line -Fairly Valued range.
0.56
PS
Dollar General Corp. (DG) has a current PS of 0.56. The 5-year average PS is 1.00. The thresholds are as follows: Strongly Undervalued below 0.18, Undervalued between 0.18 and 0.59, Fairly Valued between 1.42 and 0.59, Overvalued between 1.42 and 1.83, and Strongly Overvalued above 1.83. The current Forward PS of 0.56 falls within the Undervalued range.
12.32
P/OCF
Dollar General Corp. (DG) has a current P/OCF of 12.32. The 5-year average P/OCF is 13.74. The thresholds are as follows: Strongly Undervalued below 6.45, Undervalued between 6.45 and 10.10, Fairly Valued between 17.39 and 10.10, Overvalued between 17.39 and 21.04, and Strongly Overvalued above 21.04. The current Forward P/OCF of 12.32 falls within the Historic Trend Line -Fairly Valued range.
24.67
P/FCF
Dollar General Corp. (DG) has a current P/FCF of 24.67. The 5-year average P/FCF is 28.18. The thresholds are as follows: Strongly Undervalued below 7.52, Undervalued between 7.52 and 17.85, Fairly Valued between 38.51 and 17.85, Overvalued between 38.51 and 48.84, and Strongly Overvalued above 48.84. The current Forward P/FCF of 24.67 falls within the Historic Trend Line -Fairly Valued range.
Dollar General Corp (DG) has a current Price-to-Book (P/B) ratio of 3.44. Compared to its 3-year average P/B ratio of 4.44 , the current P/B ratio is approximately -22.41% higher. Relative to its 5-year average P/B ratio of 5.98, the current P/B ratio is about -42.46% higher. Dollar General Corp (DG) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 4.61%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 4.13% , the current FCF yield is about -100.00% lower.
3.44
P/B
Median3y
4.44
Median5y
5.98
7.65
FCF Yield
Median3y
4.61
Median5y
4.13
Competitors Valuation Multiple
The average P/S ratio for DG's competitors is , providing a benchmark for relative valuation. Dollar General Corp Corp (DG) exhibits a P/S ratio of , which is NaN% above the industry average. Given its robust revenue growth of 4.58%, 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 67.62% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 1.93 to 2.65.
The secondary factor is the P/E Change, contributed 25.73%to the performance.
Overall, the performance of DG in the past 1 year is driven by Margin Expansion. Which is more sustainable.
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FAQ
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