Dollar Tree offers a selection of everyday basic products as well as seasonal, closeout and promotional merchandise in locations across the U.S. and Canada. The company was founded in 1986 and is based in Chesapeake, Virginia.
DLTR 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 Tree Inc. To summarize, we found that Dollar Tree Inc ranked in the 50th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 14.67% on a DCF basis. As for the metrics that stood out in our discounted cash flow analysis of Dollar Tree Inc, consider:
The company has produced more trailing twelve month cash flow than 71.63% of its sector Consumer Defensive.
Dollar Tree Inc's weighted average cost of capital (WACC) is 7%; for context, that number is higher than just 9.65% of tickers in our DCF set.
DLTR'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 just 9.65% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
CAG, THS, KDP, NWL, and HMHC can be thought of as valuation peers to DLTR, in the sense that they are in the Consumer Defensive sector and have a similar price forecast based on DCF valuation.
Dollar Tree, Inc. (NASDAQ: DLTR), North America’s leading operator of discount variety stores, is hosting a virtual career fair on Wednesday, July 29, for full- and part-time positions available within its 26 U.S. distribution centers.
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