DLTR Relative Valuation
DLTR'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, DLTR is overvalued; if below, it's undervalued.
Historical Valuation
Dollar Tree Inc (DLTR) is now in the Fair zone, suggesting that its current forward PE ratio of 18.88 is considered Fairly compared with the five-year average of 18.67. The fair price of Dollar Tree Inc (DLTR) is between 106.38 to 142.67 according to relative valuation methord.
Relative Value
Fair Zone
106.38-142.67
Current Price：116.75
Fair
19.38
PE
1Y
3Y
5Y
Trailing
Forward
12.61
EV/EBITDA
Dollar Tree Inc. (DLTR) has a current EV/EBITDA of 12.61. The 5-year average EV/EBITDA is 12.76. The thresholds are as follows: Strongly Undervalued below 8.80, Undervalued between 8.80 and 10.78, Fairly Valued between 14.73 and 10.78, Overvalued between 14.73 and 16.71, and Strongly Overvalued above 16.71. The current Forward EV/EBITDA of 12.61 falls within the Historic Trend Line -Fairly Valued range.
17.30
EV/EBIT
Dollar Tree Inc. (DLTR) has a current EV/EBIT of 17.30. The 5-year average EV/EBIT is 18.18. The thresholds are as follows: Strongly Undervalued below 12.79, Undervalued between 12.79 and 15.49, Fairly Valued between 20.88 and 15.49, Overvalued between 20.88 and 23.58, and Strongly Overvalued above 23.58. The current Forward EV/EBIT of 17.30 falls within the Historic Trend Line -Fairly Valued range.
1.13
PS
Dollar Tree Inc. (DLTR) has a current PS of 1.13. The 5-year average PS is 0.94. The thresholds are as follows: Strongly Undervalued below 0.50, Undervalued between 0.50 and 0.72, Fairly Valued between 1.16 and 0.72, Overvalued between 1.16 and 1.39, and Strongly Overvalued above 1.39. The current Forward PS of 1.13 falls within the Historic Trend Line -Fairly Valued range.
13.15
P/OCF
Dollar Tree Inc. (DLTR) has a current P/OCF of 13.15. The 5-year average P/OCF is 11.39. The thresholds are as follows: Strongly Undervalued below 5.92, Undervalued between 5.92 and 8.66, Fairly Valued between 14.13 and 8.66, Overvalued between 14.13 and 16.87, and Strongly Overvalued above 16.87. The current Forward P/OCF of 13.15 falls within the Historic Trend Line -Fairly Valued range.
37.02
P/FCF
Dollar Tree Inc. (DLTR) has a current P/FCF of 37.02. The 5-year average P/FCF is 38.05. The thresholds are as follows: Strongly Undervalued below -1.49, Undervalued between -1.49 and 18.28, Fairly Valued between 57.83 and 18.28, Overvalued between 57.83 and 77.60, and Strongly Overvalued above 77.60. The current Forward P/FCF of 37.02 falls within the Historic Trend Line -Fairly Valued range.
Dollar Tree Inc (DLTR) has a current Price-to-Book (P/B) ratio of 6.41. Compared to its 3-year average P/B ratio of 3.62 , the current P/B ratio is approximately 77.17% higher. Relative to its 5-year average P/B ratio of 3.70, the current P/B ratio is about 73.30% higher. Dollar Tree Inc (DLTR) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 3.82%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 3.70% , the current FCF yield is about -100.00% lower.
6.58
P/B
Median3y
3.62
Median5y
3.70
8.66
FCF Yield
Median3y
3.82
Median5y
3.70
Competitors Valuation Multiple
The average P/S ratio for DLTR's competitors is , providing a benchmark for relative valuation. Dollar Tree Inc Corp (DLTR) exhibits a P/S ratio of , which is NaN% above the industry average. Given its robust revenue growth of -37.22%, 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 DLTR increased by 54.62% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 3.08 to 5.15.
The secondary factor is the P/E Change, contributed 24.63%to the performance.
Overall, the performance of DLTR in the past 1 year is driven by Margin Expansion. Which is more sustainable.
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FAQ
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