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Dollar Tree Inc
NASDAQ:DLTR

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Dollar Tree Inc
NASDAQ:DLTR
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Price: 101.97 USD -1.79% Market Closed
Market Cap: $20.1B

EV/EBIT

13.1
Current
13%
Cheaper
vs 3-y average of 15.1

Enterprise Value to EBIT (EV/EBIT) ratio compares a company`s total enterprise value to its earnings before interest and taxes. It shows how much investors are paying for each dollar of the company`s earnings, including both equity and debt.

EV/EBIT
13.1
=
Enterprise Value
$23.8B
/
EBIT
$1.7B

Enterprise Value to EBIT (EV/EBIT) ratio compares a company`s total enterprise value to its earnings before interest and taxes. It shows how much investors are paying for each dollar of the company`s earnings, including both equity and debt.

EV/EBIT
13.1
=
Enterprise Value
$23.8B
/
EBIT
$1.7B

Valuation Scenarios

Dollar Tree Inc is trading below its 3-year average

If EV/EBIT returns to its 3-Year Average (15.1), the stock would be worth $117.56 (15% upside from current price).

Statistics
Positive Scenarios
4/4
Maximum Downside
No Downside Scenarios
Maximum Upside
+50%
Average Upside
32%
Scenario EV/EBIT Value Implied Price Upside/Downside
Current Multiple 13.1 $101.97
0%
3-Year Average 15.1 $117.56
+15%
5-Year Average 15.8 $122.47
+20%
Industry Average 18.7 $145.44
+43%
Country Average 19.6 $152.57
+50%

Forward EV/EBIT
Today’s price vs future ebit

Today's Enterprise Value EBIT Forward EV/EBIT
$23.8B
/
Feb 2026
$1.7B
=
13.1
Current
$23.8B
/
Jan 2027
$1.9B
=
12.6
Forward
$23.8B
/
Jan 2028
$2B
=
11.7
Forward
$23.8B
/
Jan 2029
$2.1B
=
11.2
Forward

Forward EV/EBIT shows whether today’s EV/EBIT still looks high or low once future ebit are taken into account.

Peer Comparison

All Multiples
EV/EBIT
P/E
All Countries
Close

Market Distribution

Lower than 72% of companies in the United States of America
Percentile
28th
Based on 8 638 companies
28th percentile
13.1
Low
0 — 13.6
Typical Range
13.6 — 27.8
High
27.8 —
Distribution Statistics
the United States of America
Min 0
30th Percentile 13.6
Median 19.6
70th Percentile 27.8
Max 1 826 183.2

Dollar Tree Inc
Glance View

Dollar Tree Inc., a stalwart in the discount retail industry, weaves a narrative of affordability and strategic prowess. Originally founded in 1986, the company has etched its unique niche by strictly adhering to a single-price-point promise – offering an array of items for just one dollar. This particular business model, while simple in appearance, is emblematic of their efficient operational strategies. Dollar Tree sources its products globally, leveraging bulk purchasing and cost-effective supply chains to maintain desired margins. The store shelves brim with an eclectic mix of categories including groceries, health and beauty aids, household supplies, and seasonal merchandise, all curated to appeal to bargain hunters and budget-conscious consumers across a broad spectrum. As it unfolds from its roots, Dollar Tree's growth is not just anchored in low pricing. In 2015, the company made a bold leap forward by acquiring Family Dollar, another discount retailer, enabling a complementary expansion of its market footprint. This acquisition allowed Dollar Tree to operate under two distinct banners, thereby capturing a broader demographic. The synergy between Dollar Tree’s fixed-price model and Family Dollar’s multi-price points has provided it with a competitive edge. Revenue streams are meticulously bolstered through an extensive network of nearly 16,000 stores across North America, supported by a distribution system adept at managing costs and maintaining inventory turnover. This model provides a steady stream of revenue, fueled by the high volumes of customers attracted by the promise of value for money in uncertain economic climates.

DLTR Intrinsic Value
123.39 USD
Undervaluation 17%
Intrinsic Value
Price $101.97
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