Dollar Tree Price to Sales vs. Price to Earning

DLTR
 Stock
  

USD 148.54  2.79  1.84%   

For Dollar Tree profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Dollar Tree to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Dollar Tree utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Dollar Tree's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Dollar Tree over time as well as its relative position and ranking within its peers. Continue to Investing Opportunities.
  
Dollar Tree Price to Sales Ratio is relatively stable at the moment as compared to the past year. Dollar Tree reported last year Price to Sales Ratio of 1.10. As of 11/28/2022, Return on Sales is likely to grow to 0.1, while Sales per Share is likely to drop 82.99. Dollar Tree Income Tax Expense is relatively stable at the moment as compared to the past year. Dollar Tree reported last year Income Tax Expense of 304.3 Million. As of 11/28/2022, Net Income Per Employee is likely to grow to 6,842, while Accumulated Other Comprehensive Income is likely to drop (36.8 M).

Dollar Tree Revenues

18.38 Billion

Is Dollar Tree's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Dollar Tree. If investors know Dollar will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Dollar Tree listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth YOY
0.25
Market Capitalization
33.5 B
Quarterly Revenue Growth YOY
0.081
Return On Assets
0.0631
Return On Equity
0.21
The market value of Dollar Tree is measured differently than its book value, which is the value of Dollar that is recorded on the company's balance sheet. Investors also form their own opinion of Dollar Tree's value that differs from its market value or its book value, called intrinsic value, which is Dollar Tree's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Dollar Tree's market value can be influenced by many factors that don't directly affect Dollar Tree's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Dollar Tree's value and its price as these two are different measures arrived at by different means. Investors typically determine Dollar Tree value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Dollar Tree's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Dollar Tree Price to Earning vs. Price to Sales Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Dollar Tree's current stock value. Our valuation model uses many indicators to compare Dollar Tree value to that of its competitors to determine the firm's financial worth.
Dollar Tree is one of the top stocks in price to sales category among related companies. It is one of the top stocks in price to earning category among related companies reporting about  17.53  of Price to Earning per Price to Sales. As of 11/28/2022, Price to Earnings Ratio is likely to grow to 24.46, while Earnings Before Interest Taxes and Depreciation Amortization EBITDA are likely to drop slightly above 2 B.. Comparative valuation analysis is a catch-all model that can be used if you cannot value Dollar Tree by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Dollar Tree's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Dollar Tree's earnings, one of the primary drivers of an investment's value.

Dollar Price to Earning vs. Price to Sales

Price to Sales ratio is typically used for valuing equity relative to its own past performance as well as to performance of other companies or market indexes. In most cases, the lower the ratio, the better it is for investors. However, it is advisable for investors to exercise caution when looking at price-to-sales ratios across different industries.
Dollar Tree 
P/S 
 = 
MV Per Share 
Revenue Per Share 
1.36 X
The most critical factor to remember is that the price of equity takes a firm's debt into account, whereas the sales indicators do not consider financial leverage. Generally speaking, Price to Sales ratio shows how much market values every dollar of the company's sales.
Price to Earnings ratio is typically used for current valuation of a company and is one of the most popular ratios that investors monitor daily. Holding a low PE stock is less risky because when a company's profitability falls, it is likely that earnings will also go down as well. In other words, if you start from a lower position, your downside risk is limited. There are also some investors who believe that low Price to Earnings ratio reflects the low pricing because a given company is in trouble. On the other hand, a higher PE ratio means that investors are paying more for each unit of profit.
Dollar Tree 
P/E 
 = 
Market Value Per Share 
Earnings Per Share 
23.84 X
Generally speaking, the Price to Earnings ratio gives investors an idea of what the market is willing to pay for the company's current earnings.

Dollar Price to Earning Comparison

Dollar Tree is currently under evaluation in price to earning category among related companies.

Dollar Tree Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Dollar Tree, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Dollar Tree will eventually generate negative long term returns. The profitability progress is the general direction of Dollar Tree's change in net profit over the period of time. It can combine multiple indicators of Dollar Tree, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for 2022
Accumulated Other Comprehensive Income-34.1 M-36.8 M
Consolidated Income1.3 BB
Net Income1.3 BB
Net Income Common Stock1.3 BB
Operating Income1.8 B1.5 B
Income Tax Expense304.3 M347 M
Net Income Per Employee6.3 K6.8 K

Dollar Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Dollar Tree. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Dollar Tree position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Dollar Tree's important profitability drivers and their relationship over time.

Use Dollar Tree in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Dollar Tree position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Dollar Tree will appreciate offsetting losses from the drop in the long position's value.

Dollar Tree Pair Trading

Dollar Tree Pair Trading Analysis

The ability to find closely correlated positions to Dollar Tree could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Dollar Tree when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Dollar Tree - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Dollar Tree to buy it.
The correlation of Dollar Tree is a statistical measure of how it moves in relation to other equities. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Dollar Tree moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Dollar Tree moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Dollar Tree can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Dollar Tree position

In addition to having Dollar Tree in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

Did You Try This Idea?

Run Management Thematic Idea Now

Management
Management Theme
Companies providing management services to businesses. The Management theme has 40 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Management Theme or any other thematic opportunities.
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Continue to Investing Opportunities. You can also try Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.

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To fully project Dollar Tree's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Dollar Tree at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Dollar Tree's income statement, its balance sheet, and the statement of cash flows.
Potential Dollar Tree investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Dollar Tree investors may work on each financial statement separately, they are all related. The changes in Dollar Tree's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Dollar Tree's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.