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Relatively High EV/EBITDA Ratio Detected in Shares of Tuesday Morning in the General Merchandise Stores Industry (TUES, DLTR, DG, BIG, TGT)

By David Diaz

Below are the three companies in the General Merchandise Stores industry with the highest enterprise value to EBITDA (EV/EBITDA) ratios. EV/EBITDA is an important metric used in valuing comparable companies. It is capital structure neutral and generally the lower the ratio, the more undervalued the company is believed to be.

Tuesday Morning ranks highest with a an EV/EBITDA ratio of 27.75. Following is Dollar Tree with a an EV/EBITDA ratio of 10.90. Dollar General ranks third highest with a an EV/EBITDA ratio of 9.63.

Big Lots follows with a an EV/EBITDA ratio of 6.05, and Target rounds out the top five with a an EV/EBITDA ratio of 5.60.

SmarTrend recommended that its subscribers protect gains by selling shares of Target on December 28th, 2016 by issuing a Downtrend alert when the shares were trading at $73.37. Since that call, shares of Target have fallen 26.0%. We are now looking for when a new Uptrend will commence and will alert SmarTrend subscribers in real time.

Keywords: highest ev/ebitda ratio tuesday morning Dollar Tree Dollar General big lots Target

Ticker(s): TUES DLTR DG BIG TGT