Dollar General is a discount retailer, offering a selection of merchandise, including consumables, seasonal, home products and apparel across the U.S. The company was founded in 1939 and is based in Goodlettsville, Tennessee.
DG Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Dollar General Corp. To summarize, we found that Dollar General Corp ranked in the 57th percentile in terms of potential gain offered. Moreover, under all the scenarios we modelled, the output consistently forecasted positive returns. As for the metrics that stood out in our discounted cash flow analysis of Dollar General Corp, consider:
Interest coverage, a measure of earnings relative to interest payments, is 26.09 -- which is good for besting 87.42% of its peer stocks (US stocks in the Consumer Defensive sector with positive cash flow).
Dollar General Corp's weighted average cost of capital (WACC) is 8%; for context, that number is higher than merely 17.13% of tickers in our DCF set.
DG's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than merely 17.13% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
Want more companies with a valuation profile/forecast similar to that of Dollar General Corp? See CCEP, THS, DLTR, UN, and KHC.
Data by YCharts Image Shown: Shares of Dollar General Corporation have surged higher in recent years. We see room for additional upside. By Callum Turcan One of our favorite retailers out there is Dollar General Corporation (DG), which operates over 16,700 convenience stores across 46 states in the US. We...
In the small community of White Sulphur Springs, everyone knows each others’ political stance. But does it promote any fruitful debate? The hamlet of White Sulphur Springs, two hours northwest of New York City, tumbles toward the rolling foothills of the Catskill mountains off New York state route 52 in rural, verdant Sullivan county. The first white settlers, drawn by the dense hemlock forest, set up sawmills; later, dairy farms and tanneries were the area’s main economic drivers. But now and for the past hundred or so years, this bucolic wedge of New York countryside relies on tourism. Nowadays in White Sulphur Springs, there’s one inn, a gardening store, a small grocery that doubles as the local post office, a quaint used bookstore, a Methodist church, and a Dollar General. Continue ...
Dollar General (DG) appointed Emily Taylor as EVP and chief merchandising officer, effective today; she served formerly as SVP, channel innovation.The company announced departure of Jason Reiser, effective September 24, 2020.Among other organizational changes: Tracey Herrmann will now serve as SVP, channel innovation, having previously served as SVP, store operations; Kal Patel, formerly VP...
Earnings reports that came out this season indicate there has been a major shift in people’s spending pattern ever since the virus unleashed havoc across markets. Most retailers, both traditional store operators and e-commerce firms, benefited from the change in shopping behavior and Dollar General Corp. (NYSE: DG) was no exception. Read management/analysts’ comments on […]