Using the industry peer median P/E multiple (trailing + forward), Dollar General Corporation (DG) has a fair value of $212.10 based on 4 comparable companies in the Discount Stores industry.
USD in millions except Fair Price. Subject company highlighted.
| Mkt Cap ($M) | Trailing P/E | Forward P/E | |
|---|---|---|---|
| Dollar General CorporationDG | 26,414 | 17.5x | 16.4x |
| Walmart Inc.WMT | 973,590 | 44.7x | 41.8x |
| Costco Wholesale CorporationCOST | 435,898 | 54.0x | 48.1x |
| Target CorporationTGT | 52,762 | 14.3x | 14.6x |
| Dollar Tree, Inc.DLTR | 21,059 | 17.8x | 15.7x |
| Industry Median | 31.3x | 28.8x | |
| (*) Profit after tax | 1,512 | 1,611 | |
| Equity Value | 47,306 | 46,361 | |
| (/) Outstanding shares | 221 | 221 | |
| Fair Price | $214 | $210 | |
This P/E relative valuation uses the industry peer median Price-to-Earnings ratio to estimate fair value. Both trailing (last 12 months) and forward (next fiscal year analyst estimates) P/E multiples are computed independently.
The industry median trailing P/E is applied to the company's TTM net income, and the forward P/E to analyst-estimated net income. Each produces an equity value divided by shares outstanding to yield a fair price per share. The selected fair value is the average of the trailing and forward legs.