Is Dollar Tree, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Dollar Tree, Inc. has moved from very expensive to expensive, indicating a shift towards a less favorable valuation assessment. The company appears to be overvalued based on its current metrics, with a P/E ratio of 18, a Price to Book Value of 5.05, and an EV to EBITDA of 10.97. In comparison, Dollar General Corp. is classified as very expensive with a P/E of 20.09, while Burlington Stores, Inc. is considered fair with a P/E of 39.78, highlighting the relative valuation pressures faced by Dollar Tree.
Despite a strong recent performance, with a 1-year return of 42.12% compared to the S&P 500's 14.08%, the long-term outlook shows a decline over 3 years at -29.69% versus the S&P 500's 81.19%, suggesting volatility and potential concerns about sustainability. Overall, Dollar Tree, Inc. is currently overvalued in the retailing sector.