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 32th percentile in terms of potential gain offered. We should note, though, that the most conservative analysis suggests this stock will yield negative results -- and thus may be a potential short opportunity. The most interesting components of our discounted cash flow analysis for Dollar Tree Inc ended up being:
Dollar Tree Inc's weighted average cost of capital (WACC) is 6%; for context, that number is higher than only 13.49% of tickers in our DCF set.
Relative to other stocks in its sector (Consumer Defensive), Dollar Tree Inc has a reliance on debt greater than 63.07% of them.
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 Tree Inc? See CAG, CHD, MKC, STZ, and NWL.