DGNEUTRAL

DG EV/EBITDA Analysis

11.5x

Updated 81h ago·SEC filings & market data

Key Takeaway

EV/EBITDA measures a company’s total value (market cap plus debt, minus cash) relative to its pre-tax, pre-interest earnings.

Sector Performance

38th percentile

11.5x

Sector Median

13.6x

Sector Avg

-30.9x

Prior Period

12.1x(Aug 2026)

↑ Improving

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Deep Analysis

EV/EBITDA measures a company’s total value (market cap plus debt, minus cash) relative to its pre-tax, pre-interest earnings.

DG’s current 12.1x means investors pay 12.1 times its operating earnings for the whole business. That is below the sector median of 13.5x, placing the stock at the 41st percentile among sector peers—slightly cheaper than the typical peer. The metric has been stable over the last 8 quarters, with no year-over-year change available and a quarter-over-quarter decline of -3.1%. A stable, below-median multiple suggests limited valuation compression risk, while the modest QoQ dip could signal slightly softer earnings or a cheaper entry point. This combination points to a balanced risk profile: no obvious overvaluation, but also no clear margin of safety beyond the peer discount. It supports the overall NEUTRAL verdict, as the valuation is neither stretched enough to warn against owning the stock nor discounted enough to recommend buying it.

Frequently Asked Questions

What does the EV/EBITDA tell investors about DG?

A valuation multiple preferred by analysts for capital-intensive or leveraged businesses. Useful for cross-sector comparisons where earnings can be distorted by debt.

How is the EV/EBITDA calculated?

EV/EBITDA is calculated as: Enterprise Value / EBITDA.

Who are DG's closest peers by EV/EBITDA?

The closest peers by EV/EBITDA include: SMTC (76.6x), SHOP (80.2x), OKTA (83.5x), TEAM (101.4x), STEM (102.7x).

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Learn More About EV/EBITDA

EV/EBITDA Explained: The Valuation Metric Pro Investors Actually Use

Learn what EV/EBITDA is, why it beats P/E for capital-heavy companies, typical sector ranges, and key limitations every serious investor should know.

The Formula

Enterprise Value / EBITDA

Why It Matters

A valuation multiple preferred by analysts for capital-intensive or leveraged businesses. Useful for cross-sector comparisons where earnings can be distorted by debt.