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Shares of Dollar Tree Rank the Highest in Terms of Enterprise Value to Sales Ratio in the General Merchandise Stores Industry (DLTR, DG, TGT, BIG, FRED)

By David Diaz

Below are the three companies in the General Merchandise Stores industry with the highest Enterprise Value (EV) to Sales ratios. EV/Sales gives investors an idea of how much it costs to buy the company's sales and the lower the ratio, the more undervalued the company is believed to be.

Dollar Tree ranks highest with a EV/Sales of 1.27. Following is Dollar General with a EV/Sales of 1.09. Target ranks third highest with a EV/Sales of 0.61.

Big Lots follows with a EV/Sales of 0.43, and Fred's rounds out the top five with a EV/Sales of 0.28.

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 21.9%. We are now looking for when a new Uptrend will commence and will alert SmarTrend subscribers in real time.

Keywords: highest enterprise value to sales ratio Dollar Tree Dollar General Target big lots fred's