Dollar General Valuation
| DG Stock | USD 145.68 1.19 0.82% |
At this time, the firm appears to be fairly valued. Dollar General shows a prevailing Real Value of $140.58 per share. The current price of the firm is $145.68. Our model computes the value of Dollar General from reviewing the firm fundamentals such as Current Valuation of 49.56 B, profit margin of 0.04 %, and Shares Outstanding of 219.67 M as well as analyzing its technical indicators and probability of bankruptcy. In general, most investors advise locking in undervalued instruments and disposing overvalued instruments since, at some point, asset prices and their ongoing real values will submerge. Key fundamental drivers impacting Dollar General's valuation include:
Price Book 4.81 | Enterprise Value 49.6 B | Enterprise Value Ebitda 15.1791 | Price Sales 0.839 | Forward PE 20.5761 |
Fairly Valued
Today
Please note that Dollar General's price fluctuation is very steady at this time. Calculation of the real value of Dollar General is based on 3 months time horizon. Increasing Dollar General's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Dollar General is useful when determining the fair value of the Dollar stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Dollar General. Since Dollar General is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Dollar Stock. However, Dollar General's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 145.68 | Real 140.58 | Target 135.65 | Hype 145.52 |
The real value of Dollar Stock, also known as its intrinsic value, is the underlying worth of Dollar General Company, which is reflected in its stock price. It is based on Dollar General's financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of Dollar General's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Dollar General's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
Estimating the potential upside or downside of Dollar General helps investors to forecast how Dollar stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Dollar General more accurately as focusing exclusively on Dollar General's fundamentals will not take into account other important factors: Traditionally analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Dollar General's intrinsic value based on its ongoing forecasts of Dollar General's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Dollar General's closest peers. When choosing an evaluation method for Dollar General, ensure it is appropriate for the firm given its current financial situation and market classification. If more than one evaluation category is relevant, we suggest using both methods to arrive at a better estimate.
Dollar General Investments |
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Dollar Valuation Trend
Knowing Dollar General's actual value is paramount for traders to make sound investment determinations. Dollar General's real value is not only important for the investor to make better decisions but also for a more accurate overall view of Dollar General's financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both Dollar General's enterprise value as well as its market capitalization is the best way to gauging the value of the company and is usually enough for investors to make market timing descisions.
Dollar Market Cap
Dollar General is one of the top stocks in market capitalization category among related companies. Market capitalization of Consumer Staples industry is currently estimated at about 32.29 Billion. Dollar General totals roughly 32 Billion in market capitalization claiming about 99% of stocks in Consumer Staples industry.Dollar General Valuation Ratios as Compared to Competition
Comparative valuation techniques use various fundamental indicators to help in determining Dollar General's current stock value. Our valuation model uses many indicators to compare Dollar General value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Dollar General competition to find correlations between indicators driving Dollar General's intrinsic value. More Info.Dollar General is one of the top stocks in price to earning category among related companies. It is one of the top stocks in price to book category among related companies fabricating about 0.02 of Price To Book per Price To Earning. The ratio of Price To Earning to Price To Book for Dollar General is roughly 63.67 . The Dollar General's current Price To Book Ratio is estimated to increase to 7.25. Comparative valuation analysis is a catch-all model that can be used if you cannot value Dollar General by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Dollar General's Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Dollar General's earnings, one of the primary drivers of an investment's value.Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Dollar General's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Dollar General and how it compares across the competition.
About Dollar General Valuation
The stock valuation mechanism determines the current worth of Dollar General on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Dollar General. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Dollar General based exclusively on its fundamental and basic technical indicators. By analyzing Dollar General's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Dollar General's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Dollar General. We calculate exposure to Dollar General's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Dollar General's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 11.7 B | 12.3 B | |
| Pretax Profit Margin | 0.05 | 0.06 | |
| Operating Profit Margin | 0.06 | 0.07 | |
| Net Profit Margin | 0.04 | 0.04 | |
| Gross Profit Margin | 0.30 | 0.28 |
8 Steps to conduct Dollar General's Valuation Analysis
Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Dollar General's potential worth based on factors such as financial performance, market conditions, growth prospects, and overall economic environment. The result of company valuation is a single number representing a Company's current market value. This value can be used as a benchmark for various financial transactions such as mergers and acquisitions, initial public offerings (IPOs), or private equity investments. To conduct Dollar General's valuation analysis, follow these 8 steps:- Gather financial information: Obtain Dollar General's financial statements, including balance sheets, income statements, and cash flow statements.
- Determine Dollar General's revenue streams: Identify Dollar General's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
- Analyze market data: Research Dollar General's industry and market trends, including the size of the market, growth rate, and competition.
- Establish Dollar General's growth potential: Evaluate Dollar General's management, business model, and growth potential.
- Determine Dollar General's financial performance: Analyze its financial statements to assess its historical performance and future potential.
- Choose a valuation method: Consider the Company's specific circumstances and choose an appropriate valuation method, such as the discounted cash flow (DCF) or comparable analysis method.
- Calculate the value: Apply the chosen valuation method to the financial information and market data to calculate Dollar General's estimated value.
- Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
A single share of Dollar General represents a small ownership stake in the entity. As a stockholder of Dollar, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.
Dollar General Dividends Analysis For Valuation
The Dollar General's current Dividends Paid is estimated to increase to about (492.1 M). The current Dividend Yield is estimated to decrease to 0.01. At this time, Dollar General's Price Earnings Ratio is most likely to increase significantly in the upcoming years. The Dollar General's current Price Earnings To Growth Ratio is estimated to increase to 0.18, while Earnings Yield is projected to decrease to 0.03.
| Last Reported | Projected for Next Year | ||
| Dividends Paid | -518 M | -492.1 M | |
| Dividend Yield | 0.02 | 0.01 | |
| Dividend Payout Ratio | 0.31 | 0.20 | |
| Dividend Paid And Capex Coverage Ratio | (2.02) | (3.21) |
There are various types of dividends Dollar General can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of Dollar shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from Dollar General directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Dollar pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Dollar General by the value of the dividends paid out.
Dollar General Growth Indicators
Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, investing in growth stocks can be very risky. If the company such as Dollar General does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
| Common Stock Shares Outstanding | 219.9 M | |
| Quarterly Earnings Growth Y O Y | -0.386 | |
| Forward Price Earnings | 20.5761 |
Dollar General Current Valuation Indicators
Valuation refers to the process of determining the present value of Dollar General and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Dollar we look at many different elements of the entity such as Dollar's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Dollar General's valuation analysis is also a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Dollar General's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Dollar General, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Dollar General's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Dollar General's worth.When determining whether Dollar General is a strong investment it is important to analyze Dollar General's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Dollar General's future performance. For an informed investment choice regarding Dollar Stock, refer to the following important reports: Check out Investing Opportunities to better understand how to build diversified portfolios, which includes a position in Dollar General. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in price. For more detail on how to invest in Dollar Stock please use our How to Invest in Dollar General guide.Note that the Dollar General information on this page should be used as a complementary analysis to other Dollar General's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Complementary Tools for Dollar Stock analysis
When running Dollar General's price analysis, check to measure Dollar General's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Dollar General is operating at the current time. Most of Dollar General's value examination focuses on studying past and present price action to predict the probability of Dollar General's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Dollar General's price. Additionally, you may evaluate how the addition of Dollar General to your portfolios can decrease your overall portfolio volatility.
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Is Dollar General's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Dollar General. If investors know Dollar will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Dollar General listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.39) | Dividend Share 2.36 | Earnings Share 7.55 | Revenue Per Share 176.34 | Quarterly Revenue Growth (0.03) |
The market value of Dollar General is measured differently than its book value, which is the value of Dollar that is recorded on the company's balance sheet. Investors also form their own opinion of Dollar General's value that differs from its market value or its book value, called intrinsic value, which is Dollar General's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Dollar General's market value can be influenced by many factors that don't directly affect Dollar General's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Dollar General's value and its price as these two are different measures arrived at by different means. Investors typically determine if Dollar General is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Dollar General's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.