DG PE Ratio & Valuation,Is DG Overvalued

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 19.90 is considered Fairly compared with the five-year average of 19.33. The fair price of Dollar General Corp (DG) is between 129.83 to 174.25 according to relative valuation methord.

Relative Value

Fair Zone

129.83-174.25

Current Price：143.51

Fair

19.90

13.66

EV/EBITDA

Dollar General Corp. (DG) has a current EV/EBITDA of 13.66. The 5-year average EV/EBITDA is 14.95. The thresholds are as follows: Strongly Undervalued below 10.47, Undervalued between 10.47 and 12.71, Fairly Valued between 17.18 and 12.71, Overvalued between 17.18 and 19.42, and Strongly Overvalued above 19.42. The current Forward EV/EBITDA of 13.66 falls within the Historic Trend Line -Fairly Valued range.

20.54

EV/EBIT

Dollar General Corp. (DG) has a current EV/EBIT of 20.54. The 5-year average EV/EBIT is 19.80. The thresholds are as follows: Strongly Undervalued below 14.85, Undervalued between 14.85 and 17.33, Fairly Valued between 22.28 and 17.33, Overvalued between 22.28 and 24.76, and Strongly Overvalued above 24.76. The current Forward EV/EBIT of 20.54 falls within the Historic Trend Line -Fairly Valued range.

0.69

Dollar General Corp. (DG) has a current PS of 0.69. The 5-year average PS is 0.99. The thresholds are as follows: Strongly Undervalued below 0.17, Undervalued between 0.17 and 0.58, Fairly Valued between 1.40 and 0.58, Overvalued between 1.40 and 1.81, and Strongly Overvalued above 1.81. The current Forward PS of 0.69 falls within the Historic Trend Line -Fairly Valued range.

15.10

P/OCF

Dollar General Corp. (DG) has a current P/OCF of 15.10. The 5-year average P/OCF is 13.70. The thresholds are as follows: Strongly Undervalued below 6.44, Undervalued between 6.44 and 10.07, Fairly Valued between 17.33 and 10.07, Overvalued between 17.33 and 20.96, and Strongly Overvalued above 20.96. The current Forward P/OCF of 15.10 falls within the Historic Trend Line -Fairly Valued range.

31.88

P/FCF

Dollar General Corp. (DG) has a current P/FCF of 31.88. The 5-year average P/FCF is 28.18. The thresholds are as follows: Strongly Undervalued below 7.53, Undervalued between 7.53 and 17.86, Fairly Valued between 38.51 and 17.86, Overvalued between 38.51 and 48.83, and Strongly Overvalued above 48.83. The current Forward P/FCF of 31.88 falls within the Historic Trend Line -Fairly Valued range.

Dollar General Corp (DG) has a current Price-to-Book (P/B) ratio of 3.68. Compared to its 3-year average P/B ratio of 4.27 , the current P/B ratio is approximately -13.82% higher. Relative to its 5-year average P/B ratio of 5.92, the current P/B ratio is about -37.81% higher. Dollar General Corp (DG) has a Forward Free Cash Flow (FCF) yield of approximately 7.77%. Compared to its 3-year average FCF yield of 4.89%, the current FCF yield is approximately 58.90% lower. Relative to its 5-year average FCF yield of 4.20% , the current FCF yield is about 84.89% lower.

3.68

P/B

Median3y

4.27

Median5y

5.92

7.77

FCF Yield

Median3y

4.89

Median5y

4.20

Competitors Valuation Multiple

The average P/S ratio for DG's competitors is 1.37, providing a benchmark for relative valuation. Dollar General Corp Corp (DG) exhibits a P/S ratio of 0.69, which is -49.85% above the industry average. Given its robust revenue growth of 4.58%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

Revenue Growth

Market Cap

Performance Decomposition

Market capitalization of DG increased by 104.85% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 14.50 to 23.62.

The secondary factor is the Margin Expansion, contributed 37.31%to the performance.

Overall, the performance of DG in the past 1 year is driven by P/E Change. Which is more unsustainable.

4.58%

10.18B → 10.65B

Revenue Growth

37.31%

1.93 → 2.65

Margin Expansion

62.96%

14.50 → 23.62

P/E Change

104.85%

70.06 → 143.51

Mkt Cap Growth

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Frequently Asked Questions

Is Dollar General Corp (DG) currently overvalued or undervalued?

What is Dollar General Corp (DG) fair value?

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. The fair price of Dollar General Corp (DG) is between 129.83 to 174.25 according to relative valuation methord.

How does DG's valuation metrics compare to the industry average?

What is the current P/B ratio for Dollar General Corp (DG) as of Jan 08 2026?

As of Jan 08 2026, Dollar General Corp (DG) has a P/B ratio of 3.68. This indicates that the market values DG at 3.68 times its book value.

What is the current FCF Yield for Dollar General Corp (DG) as of Jan 08 2026?

As of Jan 08 2026, Dollar General Corp (DG) has a FCF Yield of 7.77%. This means that for every dollar of Dollar General Corp’s market capitalization, the company generates 7.77 cents in free cash flow.

What is the current Forward P/E ratio for Dollar General Corp (DG) as of Jan 08 2026?

As of Jan 08 2026, Dollar General Corp (DG) has a Forward P/E ratio of 19.90. This means the market is willing to pay $19.90 for every dollar of Dollar General Corp’s expected earnings over the next 12 months.

What is the current Forward P/S ratio for Dollar General Corp (DG) as of Jan 08 2026?

As of Jan 08 2026, Dollar General Corp (DG) has a Forward P/S ratio of 0.69. This means the market is valuing DG at $0.69 for every dollar of expected revenue over the next 12 months.

DG Valuation