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Relatively High EV/EBITDA Ratio Detected in Shares of Dollar Tree in the General Merchandise Stores Industry (DLTR, FRED, DG, TUES, TGT)

By Shiri Gupta

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.

Dollar Tree ranks highest with a an EV/EBITDA ratio of 18.98. Fred's is next with a an EV/EBITDA ratio of 14.49. Dollar General ranks third highest with a an EV/EBITDA ratio of 10.36.

Tuesday Morning follows with a an EV/EBITDA ratio of 9.55, and Target rounds out the top five with a an EV/EBITDA ratio of 7.56.

SmarTrend recommended that its subscribers protect gains by selling shares of Tuesday Morning on August 30th, 2016 by issuing a Downtrend alert when the shares were trading at $6.80. Since that call, shares of Tuesday Morning have fallen 14.7%. We are now looking for when a new Uptrend will commence and will alert SmarTrend subscribers in real time.

Keywords: highest ev/ebitda ratio Dollar Tree fred's Dollar General tuesday morning Target

Ticker(s): DLTR FRED DG TUES TGT