DLTR Valuation

Dollar Tree Inc

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109.170

-3.33(-2.960%)1D

Overview
Forecast
Valuation
Earnings

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 19.05 is considered Fairly compared with the five-year average of 18.68. The fair price of Dollar Tree Inc (DLTR) is between 97.52 to 131.15 according to relative valuation methord.

Relative Value

Fair Zone

97.52-131.15

Current Price：109.17

Fair

19.05

Trailing

Forward

12.66

EV/EBITDA

Dollar Tree Inc. (DLTR) has a current EV/EBITDA of 12.66. The 5-year average EV/EBITDA is 12.79. The thresholds are as follows: Strongly Undervalued below 8.88, Undervalued between 8.88 and 10.83, Fairly Valued between 14.75 and 10.83, Overvalued between 14.75 and 16.71, and Strongly Overvalued above 16.71. The current Forward EV/EBITDA of 12.66 falls within the Historic Trend Line -Fairly Valued range.

17.74

EV/EBIT

Dollar Tree Inc. (DLTR) has a current EV/EBIT of 17.74. The 5-year average EV/EBIT is 18.24. The thresholds are as follows: Strongly Undervalued below 12.91, Undervalued between 12.91 and 15.58, Fairly Valued between 20.90 and 15.58, Overvalued between 20.90 and 23.56, and Strongly Overvalued above 23.56. The current Forward EV/EBIT of 17.74 falls within the Historic Trend Line -Fairly Valued range.

1.17

Dollar Tree Inc. (DLTR) has a current PS of 1.17. The 5-year average PS is 0.94. The thresholds are as follows: Strongly Undervalued below 0.49, Undervalued between 0.49 and 0.71, Fairly Valued between 1.16 and 0.71, Overvalued between 1.16 and 1.38, and Strongly Overvalued above 1.38. The current Forward PS of 1.17 falls within the Overvalued range.

11.56

P/OCF

Dollar Tree Inc. (DLTR) has a current P/OCF of 11.56. The 5-year average P/OCF is 11.33. The thresholds are as follows: Strongly Undervalued below 5.90, Undervalued between 5.90 and 8.61, Fairly Valued between 14.05 and 8.61, Overvalued between 14.05 and 16.76, and Strongly Overvalued above 16.76. The current Forward P/OCF of 11.56 falls within the Historic Trend Line -Fairly Valued range.

29.97

P/FCF

Dollar Tree Inc. (DLTR) has a current P/FCF of 29.97. The 5-year average P/FCF is 37.24. The thresholds are as follows: Strongly Undervalued below -3.15, Undervalued between -3.15 and 17.04, Fairly Valued between 57.43 and 17.04, Overvalued between 57.43 and 77.62, and Strongly Overvalued above 77.62. The current Forward P/FCF of 29.97 falls within the Historic Trend Line -Fairly Valued range.

Dollar Tree Inc (DLTR) has a current Price-to-Book (P/B) ratio of 5.88. Compared to its 3-year average P/B ratio of 3.45 , the current P/B ratio is approximately 70.06% higher. Relative to its 5-year average P/B ratio of 3.57, the current P/B ratio is about 64.80% higher. Dollar Tree Inc (DLTR) has a Forward Free Cash Flow (FCF) yield of approximately 6.22%. Compared to its 3-year average FCF yield of 2.92%, the current FCF yield is approximately 113.06% lower. Relative to its 5-year average FCF yield of 3.51% , the current FCF yield is about 77.11% lower.

5.88

P/B

Median3y

3.45

Median5y

3.57

6.22

FCF Yield

Median3y

2.92

Median5y

3.51

Competitors Valuation Multiple

The average P/S ratio for DLTR's competitors is 1.14, providing a benchmark for relative valuation. Dollar Tree Inc Corp (DLTR) exhibits a P/S ratio of 1.17, which is 2.48% above the industry average. Given its robust revenue growth of 11.29%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

Performance Decomposition

Market capitalization of DLTR increased by 55.25% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 15.53 to 21.53.

The secondary factor is the Revenue Growth, contributed 11.29%to the performance.

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

11.29%

4.17B → 4.64B

Revenue Growth

5.30%

6.42 → 6.76

Margin Expansion

38.66%

15.53 → 21.53

P/E Change

55.25%