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Is this Large Market Cap Stock target price reasonable for Dollar General Corporation (NYSE:DG)?

The company in question is, Dollar General Corporation (NYSE:DG) currently with a stock price of 68.98 (-0.53% today). The market cap for Dollar General Corporation is 19539.28, and is in the sector Services, and Discount, Variety Stores industry. The target price for Dollar General Corporation is 84.13. Currently Dollar General Corporation is trading with a P/E of 16.15, and a forward P/E of 14.11. Average volume for Dollar General Corporation is 4100.36 and so far today it is 1759500.

Performance in the last year for Dollar General Corporation has been 5.19%. For EPS growth, Dollar General Corporation has seen a growth of 13.20%, and is looking to grow in the next year to 8.79%. More long term stats show that EPS growth has been 16.70% over the last five years and could be 13.65% for the next five years. Dollar General Corporation has seen sales growth quarter over quarter at 5.80%, with EPS growth quarter over quarter at 13.30%. The 20-day simple moving average is -10.95%, with the 200-day simple moving average coming to -15.01%.

Since the IPO date for Dollar General Corporation on the 11/13/2009, Dollar General Corporation has seen performance year to date to be -3.13%. With Dollar General Corporation trading at 68.98, the dividend yield is 1.45%, and the EPS is 4.27.

So could Dollar General Corporation, be undervalued? Well as said before P/E is 16.15. The PEG is 1.18, P/S is 0.93 and the P/B is at 3.61. The P/cash is 105.62, with P/free cash flow at 31.89.

Dollar General Corporation ability to deal with debt shows that the current ratio is 1.4, and the quick ratio is 0.2. This is with long term debt/equity at 0.47, and total debt/equity at 0.56.

In terms of margins, Dollar General Corporation has a gross margin of 31.00%, an operating margin of 9.60% and a profit margin of 5.90%.Payout ratio for Dollar General Corporation is 22.00%. Return on assets come to 10.80% with return on investment coming to 15.00%.

Insider ownership for Dollar General Corporation, is at 0.10% and institutional ownership comes to 97.90%. Outstanding shares are at 283.26. While shares float is 281.02. The float short is currently 3.45%, and short ratio is 2.37.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

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Peter Clarke

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