DCF Tool

DG

Dollar General Corp. – All Other General Merchandise Stores
Dollar General Corporation has been delivering value to shoppers for more than 80 years. Dollar General helps shoppers Save time. Save money. Every day.® by offering products that are frequently used and replenished, such as food, snacks, health and beauty aids, cleaning supplies, basic apparel, housewares and seasonal items at everyday low prices in convenient neighborhood locations. Dollar General operated 16,979 stores in 46 states as of October 30, 2020. In addition to high-quality private brands, Dollar General sells products from America's most-trusted manufacturers such as Clorox, Energizer, Procter & Gamble, Hanes, Coca-Cola, Mars, Unilever, Nestle, Kimberly-Clark, Kellogg's, General Mills, and PepsiCo.
Analysis Results
Intrinsic Value $238.74
Latest Price $235.85
Relative Value 1% undervalued
Thoughts on this result? Let us know.
Ad
Cash Flow (Billions)
Analysis Parameters
%
%
%
New Ticker
Ad
Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of 9.2%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 6.9%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 9.2%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (billion) Present value (billion)
2023 2.18 2.04
2024 2.38 2.08
2025 2.6 2.13
2026 2.84 2.17
2027 3.1 2.22
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 64.5 billion. This corresponds to a present value of 43.2 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 10.7 billion. Adding in the terminal value gives a total present value of 53.9 billion.

There are presently 226.0 million outstanding shares, so the intrinsic value per share is 238.74.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 6,303,843,000
Current Cash 344,829,000
Current Liabilities 5,979,357,000
Current Debt 0
Non-Cash Working Capital (NCWC) -20,343,000
Change in NCWC 152,798,000
EBIT 3,220,675,000
Tax Provision 663,917,000
Depreciation and Amortization 641,316,000
Capital Expenditure -1,070,460,000
Unlevered Free Cash Flow 2,246,269,296
Current Assets 6,914,219,000
Current Cash 1,376,577,000
Current Liabilities 5,710,783,000
Current Debt 0
Non-Cash Working Capital (NCWC) -173,141,000
Change in NCWC -567,684,000
EBIT 3,554,765,000
Tax Provision 749,330,000
Depreciation and Amortization 574,237,000
Capital Expenditure -1,027,963,000
Unlevered Free Cash Flow 1,750,924,114
Current Assets 5,177,868,000
Current Cash 240,320,000
Current Liabilities 4,543,560,000
Current Debt 555,000
Non-Cash Working Capital (NCWC) 394,543,000
Change in NCWC -1,019,083,000
EBIT 2,302,304,000
Tax Provision 489,175,000
Depreciation and Amortization 504,804,000
Capital Expenditure -784,843,000
Unlevered Free Cash Flow 491,661,714
Current Assets 4,663,020,000
Current Cash 235,487,000
Current Liabilities 3,015,857,000
Current Debt 1,950,000
Non-Cash Working Capital (NCWC) 1,413,626,000
Change in NCWC -3,252,000
EBIT 2,116,306,000
Tax Provision 425,944,000
Depreciation and Amortization 454,134,000
Capital Expenditure -734,380,000
Unlevered Free Cash Flow 1,385,541,607
Current Assets 4,247,852,000
Current Cash 267,441,000
Current Liabilities 2,964,878,000
Current Debt 401,345,000
Non-Cash Working Capital (NCWC) 1,416,878,000
Change in NCWC 48,877,000
EBIT 2,007,818,000
Tax Provision 368,320,000
Depreciation and Amortization 404,231,000
Capital Expenditure -646,456,000
Unlevered Free Cash Flow 1,426,734,834
Current Assets 3,677,771,000
Current Cash 187,915,000
Current Liabilities 2,622,805,000
Current Debt 500,950,000
Non-Cash Working Capital (NCWC) 1,368,001,000
Change in NCWC 87,755,000
EBIT 2,063,449,000
Tax Provision 714,495,000
Depreciation and Amortization 379,931,000
Capital Expenditure -560,296,000
Unlevered Free Cash Flow 1,220,786,602
Current Assets 3,432,410,000
Current Cash 157,947,000
Current Liabilities 1,995,596,000
Current Debt 1,379,000
Non-Cash Working Capital (NCWC) 1,280,246,000
Change in NCWC 214,042,000
EBIT 1,940,294,000
Tax Provision 687,944,000
Depreciation and Amortization 352,431,000
Capital Expenditure -504,806,000
Unlevered Free Cash Flow 1,281,617,596
Current Assets 3,532,609,000
Current Cash 579,823,000
Current Liabilities 1,987,740,000
Current Debt 101,158,000
Non-Cash Working Capital (NCWC) 1,066,204,000
Change in NCWC 102,789,000
EBIT 1,769,093,000
Tax Provision 615,516,000
Depreciation and Amortization 342,353,000
Capital Expenditure -373,967,000
Unlevered Free Cash Flow 1,192,442,244
Current Assets 3,205,607,000
Current Cash 506,187,000
Current Liabilities 1,811,971,000
Current Debt 75,966,000
Non-Cash Working Capital (NCWC) 963,415,000
Change in NCWC 169,051,000
EBIT 1,736,185,000
Tax Provision 603,214,000
Depreciation and Amortization 332,837,000
Capital Expenditure -538,444,000
Unlevered Free Cash Flow 1,056,460,171
Current Assets 2,677,113,000
Current Cash 145,094,000
Current Liabilities 1,738,547,000
Current Debt 892,000
Non-Cash Working Capital (NCWC) 794,364,000
Change in NCWC 156,105,000
EBIT 1,655,276,000
Tax Provision 544,732,000
Depreciation and Amortization 302,911,000
Capital Expenditure -571,596,000
Unlevered Free Cash Flow 940,528,630

This analysis is provided for informational purposes only and does not constitute financial or investing advice. For more information on the advantages and limitations of DCF analysis see background. This information is provided on an "as is" basis. No warranty, expressed or implied, is made regarding accuracy, adequacy, completeness, legality, reliability or usefulness of any information. By using this site you agree that under no circumstances shall Valuation Tools LLC be held liable for any loss or damage caused by information obtained from this website including any articles, data, videos, its social media accounts, or any other materials.