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Dollar Tree Inc
NASDAQ:DLTR

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Dollar Tree Inc
NASDAQ:DLTR
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Price: 101.79 USD -0.45%
Market Cap: $20.1B

EV/OCF

8.6
Current
13%
Cheaper
vs 3-y average of 9.9

Enterprise Value to Operating Cash Flow (EV/OCF) ratio compares a company`s total enterprise value to its operating cash flow. It shows how much investors are paying for each dollar of the company`s operating cash flow, including both equity and debt.

EV/OCF
8.6
=
Enterprise Value
$23.8B
/
Operating Cash Flow
$2.5B

Enterprise Value to Operating Cash Flow (EV/OCF) ratio compares a company`s total enterprise value to its operating cash flow. It shows how much investors are paying for each dollar of the company`s operating cash flow, including both equity and debt.

EV/OCF
8.6
=
Enterprise Value
$23.8B
/
Operating Cash Flow
$2.5B

Valuation Scenarios

Dollar Tree Inc is trading below its 3-year average

If EV/OCF returns to its 3-Year Average (9.9), the stock would be worth $117.22 (15% upside from current price).

Statistics
Positive Scenarios
4/4
Maximum Downside
No Downside Scenarios
Maximum Upside
+94%
Average Upside
50%
Scenario EV/OCF Value Implied Price Upside/Downside
Current Multiple 8.6 $101.79
0%
3-Year Average 9.9 $117.22
+15%
5-Year Average 12.1 $142.86
+40%
Industry Average 12.9 $152.35
+50%
Country Average 16.7 $197.75
+94%

Forward EV/OCF
Today’s price vs future operating cash flow

Not enough data available to calculate forward EV/OCF

Peer Comparison

All Multiples
EV/OCF
P/E
All Countries
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Market Distribution

Lower than 83% of companies in the United States of America
Percentile
17th
Based on 9 518 companies
17th percentile
8.6
Low
0 — 11.7
Typical Range
11.7 — 23.6
High
23.6 —
Distribution Statistics
the United States of America
Min 0
30th Percentile 11.7
Median 16.7
70th Percentile 23.6
Max 3 178 983.5

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 18%
Intrinsic Value
Price $101.79
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