Dollar Tree - Comparative Multiple Analysis

Dollar Tree (Comparative Multiple Analysis)

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Improve your investment analysis with by seeing the Dollar Tree's Discounted Cash Flow analysis, Dollar Tree's Warren Buffet analysis, and Dollar Tree's Weighted Average Cost of Capital (WACC) Analysis.

Notes on the Comparative Multiple Analysis of Dollar Tree

WikiWealth compares Dollar Tree's revenue, EBITDA, and EBIT multiples to their peers in order to determine the appropriate fair valuation. Click in the top right corner to experiment with Dollar Tree's comparative analysis.

Notes from the analysis:

1. WikiWealth uses quantitative measures to determine the multiple range for Dollar Tree.
2. Free cash flow to the firm (FCF) multiple is free cash flow to equity holders plus interest owed to Dollar Tree's debt holders.
3. Multiples incorporate benefits due to economies of scale; WikiWealth compares absolute enterprise value multiples to competitor's multiples.
4. WikiWealth excludes outliers when calculating individual company multiples.

Helpful Information for Dollar Tree's Analysis


How does this work? The Comparative Investment Analysis determines the value of Dollar Tree by comparing Dollar Tree financial ratios, prices, growth rates, margins, etc. to those of relevant peer groups.

Value Investing Importance? This method is widely used by investment professionals to determine the correct price of investments, especially initial public offerings (IPOs). It is one element of WikiWealth's three Wall Street approaches used to determine the correct fair value of Dollar Tree.

See the Dollar Tree cash flow (DCF) analysis for a completely different approach that's popular on Wall Street for determining the value of an investment in Dollar Tree.

Also, see the Dollar Tree's buffett intrinsic valuation analysis for WikiWealth's attempt to replicate the investing formula's used by Warren Buffett and Dollar Tree's valuation conclusion for a quick summary.