Dollar General Corp (NYSE:DG) (2024)

Dollar General Corp (NYSE:DG) (1)

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Dollar General Corp (NYSE:DG) (2)

Dollar General Corp

NYSE:DG

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open = false, 5000)":class="open && 'disabled'"class="item"href="https://www.alphaspread.com/security/nyse/dg/summary">Summary open = false, 5000)":class="open && 'disabled'"class="item active"href="https://www.alphaspread.com/security/nyse/dg/dcf-valuation">DCF Valuation open = false, 5000)":class="open && 'disabled'"class="item"href="https://www.alphaspread.com/security/nyse/dg/relative-valuation">Relative Valuation open = false, 5000)":class="open && 'disabled'"class="item"href="https://www.alphaspread.com/security/nyse/dg/analyst-estimates">Wall St Estimates open = false, 5000)":class="open && 'disabled'"class="item"href="https://www.alphaspread.com/security/nyse/dg/profitability">Profitability open = false, 5000)":class="open && 'disabled'"class="item"href="https://www.alphaspread.com/security/nyse/dg/solvency">Solvency open = false, 5000)":class="open && 'disabled'"class="item"href="https://www.alphaspread.com/security/nyse/dg/financials/income-statement">Financials open = false, 5000)":class="open && 'disabled'"class="item"href="https://www.alphaspread.com/security/nyse/dg/earnings-calls/q1-2025">Earnings Calls open = false, 5000)":class="open && 'disabled'"class="item"href="https://www.alphaspread.com/security/nyse/dg/discount-rate">Discount Rate

Price:127.5 USD0.72% Market Closed

Updated:Jun 21, 2024

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Dollar General Corp (NYSE:DG) (23)Dollar General Corp

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Section:

DCF Value

This DCF valuation model was created byDollar General Corp (NYSE:DG) (24)Alpha Spreadand was last updated onJun 21, 2024.

Estimated DCF Value of oneDollar General Corp (NYSE:DG) (25)DGstock is125.08USD.Compared to the current market price of 127.5 USD, the stock isOvervalued by 2%.

DGDCF Value

Base Case

125.08USD

Overvaluation 2%

DCF Value

Price

Dollar General Corp (NYSE:DG) (26)

Worst Case

Base Case

Best Case

125.08

DCF Value

Worst Case

Base Case

Best Case

Hide

DCF Value:125.08USD

Present Value Calculation

This block is the starting point of the DCF valuation process. It calculates the present value of a company's forecasted cash flows based on selected operating model. Adjust key parameters like discount rate and terminal growth, and alter inputs such as revenue growth and margins to see their impact on valuation.

DCF Model

Base Case Scenario

Dollar General Corp (NYSE:DG) (27)

The present value of cash flows over the next 5 years amounts to 7.9B USD.The present value of the terminal value is 19.6B USD.The total present value equals 27.5B USD.

Forecast Period

Years

Discount Rate

%

Show All DCF Settings

Terminal Growth

%

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DCF Value Calculation

This stage translates the present value into DCF value per share. For firm valuation models, it adjusts present value for debt and assets to derive equity value (skipped if using equity valuation model). Finally, this equity value is divided by the number of shares to determine the DCF value per share.

Present Value to DCF Value

Capital Structure

Dollar General Corp (NYSE:DG) (28)

Present Value27.5B USD
Equity Value27.5BUSD
/Shares Outstanding219.9m
DG DCF Value125.08USD

Overvalued by 2%

You are using the equity valuation model. In this approach, further calculations for converting firm value to equity value are not required. The present value, obtained in the present value calculation block, already represents the equity value.

The DCF value per share is derived by dividing the present value by the number of shares:

Present Value

27.5BUSD

/

Number of Shares

219.9m

=

DCF Value

125.08USD

Valuation Analysis

Sensitivity Analysis

DCF Value Sensitivity Analysis

Dollar General Corp (NYSE:DG) (29)

Sensitivity Analysis assesses how changes in key factors like revenue growth, margin, and discount rate affect a stock's DCF value. By visualizing various scenarios, from significant downturns to optimistic growth, this tool helps you understand potential valuation shifts, aiding in risk assessment and strategic decision-making.

DCF Financials

Financials used in DCF Calculation

Dollar General Corp (NYSE:DG) (30)

Revenue

42.9B52.3B

Net Income

1.8B2.3B

See Also

SummaryDG intrinsic value, competitors valuation, and company profile.
DCF ValuationDG stock valuation using Discount Cash Flow valuation method.
Relative ValuationDG stock valuation using valuation multiples.
Wall Street EstimatesDG price targets and financial estimates made by Wall st analysts.
Profitability AnalysisDetailed analysis of the company's profitability.
Solvency AnalysisAnalysis of the financial position and solvency of the company.
FinancialsIncome Statement, Balance Sheet, Cash Flow Statement.
Discount RateDG stock discount rate: cost of equity and WACC.

Summary

DCF Valuation

Relative Valuation

Wall Street Estimates

Profitability Analysis

Solvency Analysis

Financials

Discount Rate

Discover More

What is the DCF value of one DG stock?

Estimated DCF Value of oneDollar General Corp (NYSE:DG) (31)DGstock is125.08USD.Compared to the current market price of 127.5 USD, the stock isOvervalued by 2%.

The true DCF Value lies somewhere between the worst-case and best-case scenario values. This is because the future is not predetermined, and the stock's DCF Value is based almost entirely on the future of the company. Knowing the full range of possible stock DCF values gives a complete picture of the investment risks and opportunities.

How was the DCF Value calculated?

1. Present Value Calculation.Utilizing the DCF operating model, Dollar General Corp (NYSE:DG) (32) Dollar General Corp's future cash flows are projected and then discounted using a chosen discount rate to determine its Present Value, which is calculated at27.5B USD.

2. DCF Value Calculation.The company's capital structure is employed to derive the total Equity Value from the previously calculated Present Value of the cash flow. This Equity Value, when divided by the total number of outstanding shares, yields the DCF Value of125.08 USDper share.

';return tooltip;}// dcfCalculator.renderValueDecompositionChart = function (){if (this.valueDecompositionChart){this.valueDecompositionChart.destroy();this.valueDecompositionChart = false;}this.valueDecompositionChart = this.createValueDecompositionChart();}dcfCalculator.createValueDecompositionChart = function (){varcObj = this;varcolumns = cObj.createValueDecompositionChartColumns();return Highcharts.chart('dcf-calculator-value-decomposition-chart', {credits: {enabled: false},chart: {type: 'waterfall',spacing: 0},plotOptions: {waterfall: {borderWidth: 0,borderRadius: 3,},series: {dataLabels: {enabled: true,inside: false,crop: false,formatter: function () {vardivider = getDivider(this.y);vardividerText = getDividerShortText(divider);varvalue = accounting.formatNumber(this.y / divider) + dividerText;if (!this.point.isSum)value = ((this.y < 0) ? '' : '+') + value;return value;},style: {fontWeight: 'normal',color: '#7B8794'}}}},title: {text: null},xAxis: {type: 'category',tickColor: 'transparent',lineColor: 'transparent',labels: {step: 1,style: {fontSize: '0.85rem',fontWeight: 300,color: '#3E4C59'}}},yAxis: {title: {text: null},labels: {enabled: false},visible: false},legend: {enabled: false},tooltip: {shared: false,backgroundColor: 'rgba(0, 0, 0, 0)',borderWidth: 0,borderRadius: 0,padding: 0,shadow: false,shape: 'rect',useHTML: true,formatter: function () {return cObj.createValueDecompositionChartTooltip(this);},style: {fontSize: '0.95rem'}},series: [{data: columns}]});}dcfCalculator.createValueDecompositionChartColumns = function (){varcObj = this;varcolumns = new Array;vardates = cObj.model.cashFlowsDates;varnHistoricalCashFlows = cObj.model.nHistoricalCashFlows;for (var i = 0; i < cObj.cashFlowsPv.length; i++){varcf = cObj.cashFlowsPv[i];vardate = dates[nHistoricalCashFlows + i];columns.push({name: date,color: (cf > 0) ? '#079A82' : '#EF5350',y: Math.round(cObj.cashFlowsPv[i])});}columns.push({name: 'Growth Period Value',color: '#627D98',isSum: true});columns.push({name: 'Terminal Value',color: (cObj.tvPv > 0) ? '#079A82' : '#EF5350',y: Math.round(cObj.tvPv),});columns.push({name: 'Total Present Value',color: '#627D98',isSum: true,});return columns;}dcfCalculator.createValueDecompositionChartTooltip = function (obj){varcolor = obj.color;varitem = obj.key;vardivider = getDivider(obj.y);vardividerText = getDividerShortText(divider);varvalue = accounting.formatNumber(obj.y / divider) + dividerText;vartooltip = '';if ((!obj.point.options.isSum) && (obj.y > 0))value = '+' + value;tooltip += '

';tooltip += '

';tooltip += '';tooltip += '';tooltip += ``;tooltip += '';tooltip += '
' + item + ':${value} USD

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';tooltip += '

';tooltip += '';tooltip += '';tooltip += '';tooltip += '';tooltip += '';tooltip += '';tooltip += '';tooltip += '';tooltip += '
' + fieldName + ':' + obj.x + '%
Intrinsic value:' + intrinsicValue + '

';tooltip += '

';if (127.5 > obj.y){tooltip += `

${underOverValuationText}

`;}else{tooltip += `

${underOverValuationText}

`;}tooltip += '

';return tooltip;}dcfCalculator.renderSensitivityInfoOnChart = function (sensitivityResults){this.renderStockPriceOnSensitivityChart();}dcfCalculator.renderStockPriceOnSensitivityChart = function (){this.sensitivityChart.yAxis[0].addPlotLine({dashStyle: 'ShortDot',value: 127.5,width: 1,zIndex: 3,color: '#1F2933',label: {y: -2,x: -10,useHTML: true,text: '

Last Price: 127.5 USD

',align: 'right'}});}dcfCalculator.startExclusiveAnimator = function (selector, callback){varcObj = this;if (cObj.animatorStates[selector] === undefined)cObj.animatorStates[selector] = 'init';if (cObj.animatorStates[selector] === 'init'){cObj.animatorStates[selector] = 'started';new Animator($(`#${selector}`), () => {cObj.animatorStates[selector] = 'init';callback();});}}//

Dollar General Corp (NYSE:DG) (2024)

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