Is It Too Late To Consider Dollar General (DG) After A 112% One Year Rally?

Simply Wall St.01-13

If you are wondering whether Dollar General's share price still offers value after a strong run, this article will walk through what the current market price might be implying about the business. The ...

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The ...</p>\n\n<a href=\"https://simplywall.st/stocks/us/consumer-retailing/nyse-dg/dollar-general/news/is-it-too-late-to-consider-dollar-general-dg-after-a-112-one\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BK4588","symbol_name":"碎股","start_time":0,"source_url":"https://simplywall.st/stocks/us/consumer-retailing/nyse-dg/dollar-general/news/is-it-too-late-to-consider-dollar-general-dg-after-a-112-one","article_id":"2603085025","we_media_id":null,"thumbnails":["https://images.simplywall.st/asset/industry/4432000-choice1-main-header/1585186862198"],"rights":{"source":"simplywall_highlight","url":"https://simplywall.st/stocks/us/consumer-retailing/nyse-dg/dollar-general/news/is-it-too-late-to-consider-dollar-general-dg-after-a-112-one","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2603085025","pubTimestamp":1768271128,"columns":[],"sourceInfo":{"source_id":"simplywall_highlight","name":"Simply Wall St."},"weMediaInfo":null,"summary":"If you are wondering whether Dollar General's share price still offers value after a strong run, this article will walk through what the current market price might be implying about the business.\nThe stock last closed at US$148.86, with returns of 7.1% over 7 days, 11.7% over 30 days, 8.8% year to date, 112.5% over 1 year, negative 32.2% over 3 years, and negative 23.9% over 5 years, which gives a mixed picture of recent and longer term performance.\nRecent coverage has focused on Dollar...","collect":0,"end_time":0,"defaultTopTitle":"simplywall.st","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK4588":"碎股","DG":"美国达乐公司","BK4114":"综合货品商店","LU1585245621.USD":"EASTSPRING INV GLOBAL LOW VOLATILITY EQUITY FUND \"A\" (USD) ACC B","BK4585":"ETF&股票定投概念","LU1430594728.SGD":"Eastspring Investments - Global Low Volatility Equity AS SGD","LU1989763690.USD":"东方汇理世代食品基金A2 Acc","BK4155":"大卖场与超市","LU1989763427.SGD":"CPR Invest - Food For Generations A2 Acc SGD-H","BK4504":"桥水持仓","DCF":"Dreyfus Alcentra Global Credit Income 2024 Target Term Fund, Inc"},"translate_title":"在一年上涨112%之后，现在考虑Dollar General(DG)是否为时已晚？","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"DG":1.5,"DCF":1},"content_text":"If you are wondering whether Dollar General's share price still offers value after a strong run, this article will walk through what the current market price might be implying about the business. The stock last closed at US$148.86, with returns of 7.1% over 7 days, 11.7% over 30 days, 8.8% year to date, 112.5% over 1 year, negative 32.2% over 3 years, and negative 23.9% over 5 years, which gives a mixed picture of recent and longer term performance. Recent coverage has focused on Dollar General as a key US consumer retailing name, with attention on how it is positioned in the discount segment and how that positioning fits into broader consumer spending trends. This context has helped frame the sharp 1 year return against a backdrop where investors are reassessing risk and potential resilience in lower priced retail formats. On our valuation checks, Dollar General scores 1 out of 6 for being assessed as undervalued, so we will look at what different valuation methods say about that number and then finish with a broader way of thinking about value that goes beyond any single model.  Dollar General scores just 1/6 on our valuation checks. See what other red flags we found in the full valuation breakdown. AdvertisementApproach 1: Dollar General Discounted Cash Flow (DCF) Analysis A Discounted Cash Flow model takes estimates of a company’s future cash flows and discounts them back to today to get an implied value for the business. It is essentially asking what all those future dollars are worth in today’s money. For Dollar General, the model uses a 2 Stage Free Cash Flow to Equity approach based on cash flow projections. The latest twelve month free cash flow is about $2.06b. Analyst inputs and extrapolated estimates feed into a ten year path of free cash flow, reaching a projected $1.88b in 2030, with later years extended by Simply Wall St. When those projected cash flows are discounted back, the DCF model suggests an intrinsic value of about US$171.52 per share. Compared with the recent share price of US$148.86, that implies the stock trades at roughly a 13.2% discount to this DCF estimate. This indicates that Dollar General is priced below this model’s view of its underlying cash flow value. Result: UNDERVALUED Our Discounted Cash Flow (DCF) analysis suggests Dollar General is undervalued by 13.2%. Track this in your watchlist or portfolio, or discover 881 more undervalued stocks based on cash flows. DG Discounted Cash Flow as at Jan 2026 Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Dollar General. Approach 2: Dollar General Price vs Earnings For a profitable company like Dollar General, the P/E ratio is a straightforward way to think about what you are paying for each dollar of earnings. It links the share price directly to the company’s current earnings power, which many investors use as a quick yardstick for value. What counts as a “normal” P/E often reflects two broad things: the growth investors expect from those earnings and how much risk they see in the business. Higher expected growth or lower perceived risk can justify a higher multiple, while slower growth or higher risk usually call for a lower one. Dollar General currently trades on a P/E of 25.65x. That sits above both the Consumer Retailing industry average P/E of 23.63x and the peer group average of 21.46x. Simply Wall St’s Fair Ratio for Dollar General is 23.39x, which is its proprietary estimate of a suitable P/E after weighing factors such as earnings growth, profit margins, industry, market cap and key risks. This Fair Ratio can offer a more tailored anchor than a simple comparison with industry or peers, because it attempts to account for the company’s specific profile rather than just grouping it with others. Compared with the Fair Ratio of 23.39x, the current P/E of 25.65x suggests Dollar General is trading at a premium on this measure. Result: OVERVALUED NYSE:DG P/E Ratio as at Jan 2026 P/E ratios tell one story, but what if the real opportunity lies elsewhere? Discover 1445 companies where insiders are betting big on explosive growth. Upgrade Your Decision Making: Choose your Dollar General Narrative Earlier we mentioned that there is an even better way to understand valuation. Let us introduce you to Narratives, where you pair your view of Dollar General’s story with your own assumptions for future revenue, earnings and margins. You can then link that story to a financial forecast and a fair value, and compare that fair value to the current price inside Simply Wall St’s Community page. The numbers update as new news or earnings arrive. One investor might build a Narrative that sees store expansion, holiday promotions and earnings guidance supporting a fair value closer to about US$138. Another might focus on risks such as competition, labor costs and rural exposure and land nearer to about US$80. This gives you a clear, practical range to frame your own decisions about whether the current price offers enough upside for your preferred story. Do you think there's more to the story for Dollar General? Head over to our Community to see what others are saying! NYSE:DG 1-Year Stock Price Chart  This article by Simply Wall St is general in nature. We provide commentary based on historical data\n    and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your\n    financial situation. We aim to bring you long-term focused analysis driven by fundamental data.\n    Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.\n    Simply Wall St has no position in any stocks mentioned.New: Manage All Your Stock Portfolios in One PlaceWe've created the ultimate portfolio companion for stock investors, and it's free.• Connect an unlimited number of Portfolios and see your total in one currency• Be alerted to new Warning Signs or Risks via email or mobile• Track the Fair Value of your stocksTry a Demo Portfolio for FreeHave feedback on this article? Concerned about the content? Get in touch with us directly. 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