Latest Ratios: P/E Ratio 20.9x · EV/EBITDA 12.4x · ROE 33.2%. (1996–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $23.8B | $24.3B | $15.8B | $30.4B | $33.7B | $29.4B | $24.1B | $20.7B | $23.1B | $25.9B | $17.5B |
| Enterprise Value | $27.7B | $28.2B | $22.4B | $37.4B | $43.2B | $38.4B | $32.3B | $30.2B | $27.0B | $30.4B | $23.0B |
| P/E Ratio → | 20.88 | 19.80 | — | — | 20.86 | 22.15 | 17.99 | 25.09 | — | 15.09 | 19.59 |
| P/S Ratio | 1.23 | 1.25 | 0.90 | 1.81 | 2.19 | 1.12 | 0.95 | 0.88 | 1.01 | 1.16 | 0.85 |
| P/B Ratio | 6.82 | 6.46 | 3.98 | 4.16 | 3.85 | 3.81 | 3.31 | 3.32 | 4.09 | 3.60 | 3.25 |
| P/FCF | 17.06 | 17.36 | 10.14 | 52.78 | 93.35 | 71.99 | 13.27 | 24.91 | 24.32 | 29.46 | 15.83 |
| P/OCF | 9.42 | 9.59 | 5.53 | 11.34 | 20.87 | 20.55 | 8.88 | 11.10 | 13.07 | 17.13 | 10.48 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 1.45 | 1.27 | 2.23 | 2.80 | 1.46 | 1.27 | 1.28 | 1.18 | 1.37 | 1.11 |
| EV / EBITDA | 12.35 | 12.54 | 11.27 | 17.19 | 17.52 | 15.20 | 12.56 | 15.85 | — | 11.66 | 9.82 |
| EV / EBIT | 17.36 | 17.62 | 15.03 | 21.07 | 20.57 | 21.21 | 17.14 | 23.99 | — | 15.18 | 13.48 |
| EV / FCF | — | 20.15 | 14.35 | 64.81 | 119.62 | 93.98 | 17.80 | 36.30 | 28.45 | 34.68 | 20.76 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 36.4% | 36.4% | 35.8% | 35.9% | 37.5% | 29.4% | 30.5% | 29.8% | 30.4% | 31.6% | 30.9% |
| Operating Margin | 8.2% | 8.2% | 8.3% | 10.6% | 13.6% | 6.9% | 7.4% | 5.3% | -4.1% | 9.0% | 8.2% |
| Net Profit Margin | 6.6% | 6.6% | -17.2% | -5.9% | 10.5% | 5.0% | 5.3% | 3.5% | -7.0% | 7.7% | 4.3% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 33.2% | 33.2% | -53.7% | -12.4% | 19.6% | 17.7% | 19.8% | 13.9% | -24.8% | 27.3% | 18.3% |
| ROA | 8.0% | 8.0% | -14.9% | -4.4% | 7.2% | 6.3% | 6.7% | 5.0% | -10.7% | 10.7% | 5.7% |
| ROIC | 13.2% | 13.2% | 8.8% | 8.2% | 9.0% | 8.4% | 9.1% | 7.5% | -6.6% | 13.3% | 11.7% |
| ROCE | 15.7% | 15.7% | 10.7% | 9.8% | 11.6% | 10.5% | 11.4% | 9.2% | -7.6% | 14.8% | 12.4% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 1.23 | 1.23 | 1.97 | 1.01 | 1.16 | 1.29 | 1.32 | 1.60 | 0.77 | 0.79 | 1.17 |
| Debt / EBITDA | 2.06 | 2.06 | 3.94 | 3.39 | 4.11 | 3.94 | 3.74 | 5.26 | — | 2.18 | 2.70 |
| Net Debt / Equity | — | 1.04 | 1.65 | 0.95 | 1.08 | 1.16 | 1.13 | 1.52 | 0.69 | 0.64 | 1.01 |
| Net Debt / EBITDA | 1.74 | 1.74 | 3.31 | 3.19 | 3.85 | 3.56 | 3.19 | 4.98 | — | 1.75 | 2.33 |
| Debt / FCF | — | 2.80 | 4.21 | 12.04 | 26.27 | 21.99 | 4.52 | 11.39 | 4.12 | 5.22 | 4.92 |
| Interest Coverage | 18.69 | 18.69 | 13.87 | 15.77 | 16.50 | 10.12 | 12.81 | 7.78 | -2.54 | 6.65 | 4.54 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.07 | 1.07 | 1.06 | 1.31 | 1.51 | 1.34 | 1.35 | 1.20 | 2.05 | 1.60 | 1.87 |
| Quick Ratio | 0.29 | 0.29 | 0.75 | 0.77 | 0.22 | 0.30 | 0.44 | 0.21 | 0.36 | 0.49 | 0.51 |
| Cash Ratio | 0.22 | 0.22 | 0.15 | 0.09 | 0.15 | 0.24 | 0.38 | 0.15 | 0.20 | 0.38 | 0.41 |
| Asset Turnover | — | 1.44 | 0.94 | 0.76 | 0.67 | 1.21 | 1.23 | 1.21 | 1.69 | 1.36 | 1.32 |
| Inventory Turnover | 4.95 | 4.95 | 4.22 | 4.31 | 1.77 | 4.26 | 5.17 | 4.70 | 4.49 | 4.80 | 5.00 |
| Days Sales Outstanding | — | — | — | — | — | — | — | 1.75 | 1.61 | 1.48 | 2.43 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | — | — | — | — | — | — | — | — | — | — | — |
| Payout Ratio | — | — | — | — | — | — | — | — | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 4.8% | 5.1% | — | — | 4.8% | 4.5% | 5.6% | 4.0% | — | 6.6% | 5.1% |
| FCF Yield | 5.9% | 5.8% | 9.9% | 1.9% | 1.1% | 1.4% | 7.5% | 4.0% | 4.1% | 3.4% | 6.3% |
| Buyback Yield | 6.5% | 6.4% | 2.5% | 1.6% | 1.9% | 3.2% | 1.7% | 1.0% | 0.1% | 0.1% | 0.1% |
| Total Shareholder Yield | 6.5% | 6.4% | 2.5% | 1.6% | 1.9% | 3.2% | 1.7% | 1.0% | 0.1% | 0.1% | 0.1% |
| Shares Outstanding | — | $206M | $216M | $220M | $224M | $229M | $237M | $238M | $239M | $238M | $237M |
Margin compression from shrink
According to recent market data, DLTR trades at a forward P/E of 17.83, which appears to discount the volatility in earnings quality while remaining slightly below the premium multiples commanded by higher-growth peers like Five Below, suggesting investors are pricing in significant execution risk regarding the multi-price transition.
The current EV/EBITDA multiple of 12.34 indicates that the market is cautious about the company's ability to sustain historical profitability levels given the ongoing margin pressures. This valuation suggests that the market is waiting for evidence of stabilized operating margins before assigning a higher growth premium to the stock.
Based on reported figures, the company's ROIC has struggled to exceed 6.4% in recent quarters, a level that remains well below the cost of capital and highlights the difficulty in generating meaningful returns on the significant investments made into the Family Dollar segment and store infrastructure.
The persistent decay in return on invested capital suggests that the company's capital allocation strategy has not yet yielded the expected operational synergies. Investors should monitor whether the shift toward a multi-price point architecture can improve asset utilization enough to drive ROIC back toward double-digit levels.
As reported in financial statements, the company's days inventory outstanding has fluctuated significantly, reaching 72 days in 2026Q1, which suggests that inventory management remains a primary challenge in balancing the diverse product mix required for both the Dollar Tree and Family Dollar retail banners.
The lack of consistent improvement in the cash conversion cycle implies that the company is struggling to optimize its supply chain in the face of changing consumer demand patterns. This inefficiency likely contributes to the observed volatility in free cash flow, as capital remains tied up in slow-moving inventory.
Based on the company's reported figures, the debt-to-EBITDA ratio of 9.52 in 2026Q1 reflects a highly leveraged position that limits the firm's ability to maneuver during periods of economic stress or when funding necessary store renovations to remain competitive against larger mass-market retailers.
The interest coverage ratio, while currently positive, remains sensitive to any further compression in operating margins, which could jeopardize the company's ability to service its debt obligations comfortably. This leverage profile warrants close monitoring as it restricts the company's capacity for aggressive capital deployment or strategic pivots.
Analysis of the company's financials suggests that the P/E ratio is a frequently misapplied metric for this business model, as it fails to account for the significant non-cash impairment charges and volatile depreciation schedules that frequently distort net income and mask the underlying cash-generating capacity of the stores.
Investors should instead focus on EV/EBITDA or P/FCF to better understand the true operational performance, as these metrics are less susceptible to the accounting noise inherent in the company's recent restructuring efforts. Relying solely on P/E may lead to an inaccurate assessment of the company's valuation relative to its peers.
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying DLTR stock.
Dollar Tree, Inc.'s current P/E ratio is 20.9x. The historical average is 23.2x. This places it at the 59th percentile of its historical range.
Dollar Tree, Inc.'s current EV/EBITDA is 12.4x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 11.7x.
Dollar Tree, Inc.'s return on equity (ROE) is 33.2%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 20.3%.
Based on historical data, Dollar Tree, Inc. is trading at a P/E of 20.9x. This is at the 59th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Dollar Tree, Inc. has 36.4% gross margin and 8.2% operating margin.
Dollar Tree, Inc.'s Debt/EBITDA ratio is 2.1x, indicating moderate leverage. A ratio between 2-4x is manageable but warrants monitoring.