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Dollar Tree Inc (DLTR) Stock by the Numbers

Wednesday, February 28, 2024 03:24 PM | InvestorsObserver Analysts

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Dollar Tree Inc (DLTR) Stock by the Numbers

Dollar Tree Inc (DLTR) receives a weak valuation ranking of 8 from InvestorsObserver data analysis. The proprietary ranking system focuses on the underlying health of a company through analysis of its stock price, earnings, and growth rate. DLTR has a better value than 8% of stocks based on these valuation analytics. Investors primarily focused on buy-and-hold strategies will find the valuation ranking relevant to their goals when making investment decisions.

Valuation Rank - 8
DLTR gets a 8 Valuation Rank today. Find out what this means to you and get the rest of the rankings on DLTR!

Metrics Analysis

DLTR has a trailing twelve month Price to Earnings (PE) ratio of 27.31. The historical average of roughly 15 shows a poor value for DLTR stock as investors are paying higher share prices relative to the company's earnings. DLTR's high trailing PE ratio shows that the firm has been trading above its fair market value recently. Its trailing 12-month earnings per share (EPS) of 5.26 does not justify the stock's current price. However, trailing PE ratios do not factor in the company's projected growth rate, resulting in many newer firms having high PE ratios due to high growth potential enticing investors despite inadequate earnings.
DLTR currently has a 12-month-forward-PE-to-Growth (PEG) ratio of 5.89. The market is currently overvaluing DLTR in relation to its projected growth due to the PEG ratio being above the fair market value of 1. DLTR's PEG comes from its forward price to earnings ratio being divided by its growth rate. Because PEG ratios include more fundamentals of a company's overall health with additional focus on the future, they are one of the most used valuation metrics by analysts.

Summary

DLTR' has a weak valuation at its current share price on account of a overvalued PEG ratio due to strong growth. DLTR's PE and PEG are worse than the market average leading to a below average valuation score. Click Here to get the full Report on Dollar Tree Inc (DLTR) stock.

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