Dollar General Corporation (DG) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

+91.2%

$259.74

vs $135.82 price

Levered DCF

$354.82

After debt service

Piotroski score

7 / 9

Strong

Altman Z-score

2.65

Grey zone

Rating

B+

Overall 3 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	20.88×	13.88×	17.99×	21.26×	19.95×	18.19×	22.97×	19.21×
P/B	3.71×	2.11×	4.43×	9.27×	7.64×	7.25×	5.87×	4.75×
P/S	0.74×	0.38×	0.77×	1.36×	1.4×	1.43×	1.42×	1.19×
EV / EBITDA	14.24×	11.97×	14.39×	16.93×	15.99×	14.65×	18.1×	12.89×
Gross margin	30.7%	29.6%	30.3%	31.2%	31.6%	31.8%	30.6%	30.5%
Operating margin	5.2%	4.2%	6.3%	8.8%	9.4%	10.5%	8.3%	8.3%
Net margin	3.5%	2.8%	4.3%	6.4%	7.0%	7.9%	6.2%	6.2%
Current ratio	1.13×	1.19×	1.19×	1.29×	1.05×	1.21×	1.14×	1.55×
Debt / equity	1.85×	2.36×	2.68×	3.19×	2.28×	2.04×	1.75×	0.45×
Interest coverage	9.56×	6.25×	7.49×	15.75×	20.45×	23.64×	22.89×	21.19×
Dividend yield	1.6%	3.3%	1.7%	1.0%	0.8%	0.7%	0.8%	1.0%
Payout ratio	34.4%	46.1%	31.2%	20.4%	16.3%	13.4%	19.1%	19.3%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	17.8%	15.2%	24.6%	43.6%	38.3%	39.9%	25.6%	24.8%
Return on invested capital	6.6%	5.1%	7.3%	10.5%	11.7%	13.1%	9.3%	16.4%
Return on assets	4.9%	3.6%	5.4%	8.3%	9.1%	10.3%	7.5%	12.0%
Free cash flow yield	7.6%	10.8%	2.3%	0.8%	3.8%	5.9%	3.7%	4.6%
Earnings yield	4.8%	7.2%	5.6%	4.7%	5.0%	5.5%	4.4%	5.2%
Enterprise value	$46.1B	$32.2B	$47.4B	$68.6B	$61.8B	$60.5B	$50.8B	$33.1B
Net debt / EBITDA	4.5×	6.15×	5.33×	4.26×	3.6×	2.96×	4.08×	1.02×
Cash conversion cycle (days)	28	38	47	46	30	27	35	36