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Dollar General Corporation — Intrinsic Value & Fair Price

DG
NYSEConsumer DefensiveDiscount StoresCIK 0000029534dollargeneral.comAbout DG
Last close · Oct 16, 2026134.43+0.54 (+0.40%)
Market cap$29.7B
Model value · DCF · Perpetuity growth · 5y
167.02
Dollar General closed at $134.43 — undervalued by 20% vs model.
55.46the model's range300.50

DCF · Perpetuity growth · 5y leads for a mature, steady company — positive operating income and three years of positive free cash flow. From a five-year discounted cash flow.

Other models
76.94 – 200.11
Wall St. target
145.00 7% below
Below model, 1y
95 of 95 days

Price and model value

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What the marks mean
Daily close

Dividends

Quarterly · as of Oct 16, 2026
Yield, trailing 12 months
1.76%
Past 2 years
low 1.51%high 3.45%
Dividends per share, a year at a time
$1.62Oct ’21$2.07Oct ’22$2.32Oct ’23$2.36Oct ’24$2.36Oct ’25$2.36TTM
Dividends / free cash flow, FY2026
21.7%
Raised
—
Growth, 5 yrs
7.8% a year
Last change
+7.3% · Apr 2023
Every payment, with ex-dates · latest $0.59, paid Oct 20, 2026

Research on DG

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How it is valued

Valued asMature & stable
Low/slowing growth (~5% recent)Thin margins (3.5% net margin)Pays dividendsHighly cyclical earningsStrong FCF yield (8.1%)
What growth the price implies: the reverse DCF

Key figures

FY2026 · chosen for mature companies
P/E
19.6×
EV / EBITDA
13.6×
FCF yield
8.1%
Dividend yield, TTM
1.76%
Beta
0.23
Cost of capital (WACC)
5.99%
Full financials

Analyst actions

third-party, quoted
10-06Gordon Haskett · “Buy” from “Hold”upgrade
09-24HSBC · “Buy” from “Hold”upgrade
09-24HSBC · target160.00
08-28Morgan Stanley · target145.00
Ratings, targets and estimates

Comparable companies

by business, not by industry label
2 more companies list DG as a comparable
Side by side:vs DLTR

The weekly

One email a week across every stock we cover: 13F filings, insider trades, earnings and new research. It covers the whole market, not just DG. No account.

About Dollar General

Dollar General Corporation is a prominent discount retail chain that offers a wide array of merchandise across the southern, southwestern, Midwestern, and eastern regions of the United States. Its extensive product assortment primarily features consumable items. This includes household essentials such as paper products, cleaning supplies, and laundry detergents; a wide array of food options, ranging from shelf-stable groceries like cereals, pasta, canned goods, condiments, and baking ingredients, to fresh and refrigerated perishables such as milk, eggs, bread, and frozen foods, as well as alcoholic beverages like beer and wine. The selection further encompasses popular snacks (candies, cookies, crackers, and carbonated drinks), health and beauty aids (over-the-counter medications, personal care items, cosmetics, dental, and foot care products), pet food and supplies, and tobacco products. Beyond consumables, Dollar General offers seasonal merchandise, which includes holiday decorations, toys, electronics, greeting cards, stationery, prepaid phone services and accessories, gardening tools, hardware, automotive items, and home office supplies. Customers can also find various home goods, from kitchenware and small appliances to lighting, storage solutions, frames, candles, craft materials, and soft furnishings for the kitchen, bed, and bath. Lastly, the company stocks a selection of apparel, featuring everyday clothing for infants, children, women, and men, along with socks, underwear, disposable diapers, shoes, and accessories. As of February 25, 2022, Dollar General operated an impressive 18,190 stores spread across 47 U.S. states. Originally established in 1939 as J.L. Turner & Son, Inc., the company adopted its current name, Dollar General Corporation, in 1968. Its corporate headquarters are situated in Goodlettsville, Tennessee.

CEO
Todd J. Vasos
Headquarters
Goodlettsville, TN
Employees
194,000
IPO
2009-11-13
Full company profile

Model estimates for research reference only, not investment advice. Every model rests on assumptions that may not match what happens; the formulas are in how we value a stock.