Dollar Tree, Inc. (DLTR) 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

-114.6%

-$20.06

vs $137.48 price

Levered DCF

$51.39

After debt service

Piotroski score

8 / 9

Strong

Altman Z-score

3.75

Safe zone

Rating

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	18.91×	-5.22×	-30.49×	20.77×	22.04×	17.9×	24.95×	-14.45×
P/B	6.44×	3.98×	4.16×	3.84×	3.79×	3.3×	3.3×	4.08×
P/S	1.25×	0.9×	1.81×	2.18×	1.11×	0.94×	0.87×	1.01×
EV / EBITDA	12.92×	11.1×	17.19×	15.02×	15.14×	12.53×	15.81×	-84.67×
Gross margin	36.4%	35.8%	35.9%	37.5%	29.4%	30.5%	29.8%	30.4%
Operating margin	8.2%	8.3%	10.6%	13.6%	6.9%	7.4%	5.3%	-4.1%
Net margin	6.6%	-17.2%	-5.9%	10.5%	5.0%	5.3%	3.5%	-7.0%
Current ratio	1.07×	1.06×	1.31×	1.51×	1.34×	1.35×	1.2×	2.05×
Debt / equity	1.88×	1.97×	1.01×	1.16×	1.29×	1.32×	1.6×	0.77×
Interest coverage	18.69×	13.6×	15.77×	16.5×	10.13×	12.82×	7.79×	-2.54×
Dividend yield	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%
Payout ratio	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	34.2%	-76.2%	-13.7%	18.5%	17.2%	18.4%	13.2%	-28.2%
Return on invested capital	10.7%	9.2%	7.4%	7.9%	7.8%	8.0%	5.4%	-8.2%
Return on assets	9.5%	-16.3%	-4.5%	7.0%	6.1%	6.5%	4.2%	-11.8%
Free cash flow yield	5.8%	9.9%	1.9%	1.1%	1.4%	7.6%	4.0%	4.1%
Earnings yield	5.3%	-19.2%	-3.3%	4.8%	4.5%	5.6%	4.0%	-6.9%
Enterprise value	$30.5B	$22.4B	$37.4B	$43B	$38.3B	$32.3B	$30.1B	$26.9B
Net debt / EBITDA	2.68×	3.26×	3.19×	3.31×	3.56×	3.2×	4.98×	-12.31×
Cash conversion cycle (days)	29	31	45	135	49	40	50	50