Price to Book Value (P/BV)
since 2005
Calculation
Dollar Tree Inc., P/BV, long-term trends, calculation
| P/BV | = | Share price1, 2, 3 | ÷ | Book value per share1 (BVPS) | BVPS1 | = | Shareholders’ equity1 (in thousands) |
÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Mar 15, 2022 | 4.41 | = | 151.06 | ÷ | 34.29 | 34.29 | = | 7,718,500 | ÷ | 225,110,329 | |
| Mar 16, 2021 | 3.49 | = | 109.04 | ÷ | 31.21 | 31.21 | = | 7,285,300 | ÷ | 233,420,925 | |
| Mar 20, 2020 | 2.88 | = | 75.97 | ÷ | 26.41 | 26.41 | = | 6,254,800 | ÷ | 236,810,841 | |
| Mar 27, 2019 | 4.40 | = | 104.22 | ÷ | 23.69 | 23.69 | = | 5,642,900 | ÷ | 238,204,351 | |
| Mar 16, 2018 | 3.16 | = | 95.75 | ÷ | 30.26 | 30.26 | = | 7,182,300 | ÷ | 237,335,999 | |
| Mar 28, 2017 | 3.36 | = | 76.55 | ÷ | 22.81 | 22.81 | = | 5,389,500 | ÷ | 236,297,936 | |
| Mar 28, 2016 | 4.31 | = | 80.84 | ÷ | 18.74 | 18.74 | = | 4,406,900 | ÷ | 235,182,732 | |
| Mar 13, 2015 | 9.44 | = | 81.91 | ÷ | 8.68 | 8.68 | = | 1,785,000 | ÷ | 205,759,864 | |
| Mar 14, 2014 | 9.50 | = | 53.92 | ÷ | 5.68 | 5.68 | = | 1,170,700 | ÷ | 206,224,996 | |
| Mar 15, 2013 | 5.96 | = | 44.24 | ÷ | 7.42 | 7.42 | = | 1,667,300 | ÷ | 224,590,879 | |
| Mar 15, 2012 | 8.04 | = | 46.76 | ÷ | 5.81 | 5.81 | = | 1,344,600 | ÷ | 231,305,516 | |
| Mar 17, 2011 | 4.46 | = | 26.67 | ÷ | 5.98 | 5.98 | = | 1,459,000 | ÷ | 244,082,432 | |
| Mar 19, 2010 | 3.45 | = | 18.81 | ÷ | 5.45 | 5.45 | = | 1,429,200 | ÷ | 262,266,768 | |
| Mar 26, 2009 | 3.15 | = | 14.58 | ÷ | 4.62 | 4.62 | = | 1,253,200 | ÷ | 271,146,258 | |
| Apr 1, 2008 | 2.65 | = | 9.71 | ÷ | 3.67 | 3.67 | = | 988,400 | ÷ | 269,424,370 | |
| Apr 4, 2007 | 3.22 | = | 12.76 | ÷ | 3.96 | 3.96 | = | 1,167,700 | ÷ | 294,753,874 | |
| Apr 12, 2006 | 2.35 | = | 8.68 | ÷ | 3.69 | 3.69 | = | 1,172,275 | ÷ | 317,887,282 | |
| Apr 14, 2005 | 2.34 | = | 8.31 | ÷ | 3.56 | 3.56 | = | 1,164,212 | ÷ | 327,282,888 |
Based on: 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01), 10-K (reporting date: 2019-02-02), 10-K (reporting date: 2018-02-03), 10-K (reporting date: 2017-01-28), 10-K (reporting date: 2016-01-30), 10-K (reporting date: 2015-01-31), 10-K (reporting date: 2014-02-01), 10-K (reporting date: 2013-02-02), 10-K (reporting date: 2012-01-28), 10-K (reporting date: 2011-01-29), 10-K (reporting date: 2010-01-30), 10-K (reporting date: 2009-01-31), 10-K (reporting date: 2008-02-02), 10-K (reporting date: 2007-02-03), 10-K (reporting date: 2006-01-28), 10-K (reporting date: 2005-01-29).
1 US$
2 Data adjusted for splits and stock dividends.
3 Closing price as at the filing date of Dollar Tree Inc. Annual Report.
The Price to Book Value (P/BV) ratio exhibited significant volatility over the observed seventeen-year period, transitioning from a state of relative stability to a period of extreme valuation expansion before returning to a more normalized range. While both share price and book value per share (BVPS) trended upward over the long term, the rate of growth for the market price far outpaced the growth of the underlying book value during specific intervals, leading to substantial fluctuations in the P/BV multiple.
- Initial Stability and Moderate Growth (2005–2011)
- During the initial phase, the P/BV ratio remained relatively constrained, fluctuating between 2.34 and 4.46. A brief contraction occurred in 2008, coinciding with a dip in share price, but the ratio recovered steadily through 2011. This period was characterized by a consistent, incremental rise in BVPS, which mirrored the growth in share price, maintaining a valuation multiple that suggested a balanced relationship between market expectations and asset value.
- Valuation Expansion and Peak (2012–2014)
- A period of aggressive valuation expansion is observed between 2012 and 2014. The P/BV ratio spiked sharply, reaching a peak of 9.50 in 2014. This surge was driven by a rapid escalation in share price, which grew from 46.76 in 2012 to 53.92 in 2014, while the BVPS experienced a notable decline from 5.81 in 2012 to 5.68 in 2014. This divergence indicates a phase where the market attributed a high premium to future growth prospects regardless of the current net asset value.
- Normalization and Asset Growth (2015–2019)
- A significant correction in the P/BV ratio occurred starting in 2015, with the multiple falling from 9.44 to 3.16 by 2017. This normalization was driven by a dual effect: a stabilizing share price and a substantial increase in BVPS, which climbed from 8.68 in 2014 to 30.26 in 2018. This shift suggests a fundamental strengthening of the balance sheet, bringing the market valuation back into closer alignment with the tangible book value of the organization.
- Recent Volatility and Recovery (2020–2022)
- The final period shows increased volatility, with the P/BV ratio dropping to 2.88 in 2020 before trending upward to 4.41 by 2022. The dip in 2020 correlates with a sharp decrease in share price to 75.97, while the BVPS continued to grow. The subsequent recovery in the ratio through 2022 reflects a strong rebound in share price to 151.06, outpacing the steady growth of the BVPS to 34.29.
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Comparison to Competitors
Dollar Tree Inc., P/BV, long-term trends, comparison to competitors
| Dollar Tree Inc. | Costco Wholesale Corp. | Target Corp. | Walmart Inc. | |
|---|---|---|---|---|
| Mar 15, 2022 | 4.41 | 10.30 | 7.79 | 4.81 |
| Mar 16, 2021 | 3.49 | 11.30 | 6.17 | 4.59 |
| Mar 20, 2020 | 2.88 | 8.76 | 4.47 | 4.32 |
| Mar 27, 2019 | 4.40 | 8.58 | 3.52 | 3.85 |
| Mar 16, 2018 | 3.16 | 7.47 | 3.25 | 3.37 |
| Mar 28, 2017 | 3.36 | 6.39 | 2.78 | 2.81 |
| Mar 28, 2016 | 4.31 | 5.44 | 3.79 | 2.69 |
| Mar 13, 2015 | 9.44 | 6.17 | 3.63 | 3.20 |
| Mar 14, 2014 | 9.50 | 4.42 | 2.32 | 3.22 |
| Mar 15, 2013 | 5.96 | 4.73 | 2.65 | 3.22 |
| Mar 15, 2012 | 8.04 | 3.32 | 2.48 | 2.92 |
| Mar 17, 2011 | 4.46 | 2.95 | 2.31 | 2.67 |
| Mar 19, 2010 | 3.45 | 2.52 | 2.56 | 2.97 |
| Mar 26, 2009 | 3.15 | 2.54 | 1.65 | 3.17 |
| Apr 1, 2008 | 2.65 | 2.71 | 2.69 | 3.22 |
| Apr 4, 2007 | 3.22 | 3.26 | 3.27 | 3.18 |
| Apr 12, 2006 | 2.35 | 2.68 | 3.17 | 3.77 |
| Apr 14, 2005 | 2.34 | 2.66 | 3.38 | 4.29 |
Based on: 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01), 10-K (reporting date: 2019-02-02), 10-K (reporting date: 2018-02-03), 10-K (reporting date: 2017-01-28), 10-K (reporting date: 2016-01-30), 10-K (reporting date: 2015-01-31), 10-K (reporting date: 2014-02-01), 10-K (reporting date: 2013-02-02), 10-K (reporting date: 2012-01-28), 10-K (reporting date: 2011-01-29), 10-K (reporting date: 2010-01-30), 10-K (reporting date: 2009-01-31), 10-K (reporting date: 2008-02-02), 10-K (reporting date: 2007-02-03), 10-K (reporting date: 2006-01-28), 10-K (reporting date: 2005-01-29).
Comparison to Sector (Consumer Staples Distribution & Retail)
Dollar Tree Inc., P/BV, long-term trends, comparison to sector (consumer staples distribution & retail)
| Dollar Tree Inc. | Consumer Staples Distribution & Retail | |
|---|---|---|
| Mar 15, 2022 | 4.41 | 6.11 |
| Mar 16, 2021 | 3.49 | 5.83 |
| Mar 20, 2020 | 2.88 | 5.11 |
| Mar 27, 2019 | 4.40 | 4.54 |
| Mar 16, 2018 | 3.16 | 3.87 |
| Mar 28, 2017 | 3.36 | 3.19 |
| Mar 28, 2016 | 4.31 | 3.14 |
| Mar 13, 2015 | 9.44 | 3.55 |
| Mar 14, 2014 | 9.50 | 3.22 |
| Mar 15, 2013 | 5.96 | 3.29 |
| Mar 15, 2012 | 8.04 | 2.90 |
| Mar 17, 2011 | 4.46 | 2.64 |
| Mar 19, 2010 | 3.45 | 2.86 |
| Mar 26, 2009 | 3.15 | 2.86 |
| Apr 1, 2008 | 2.65 | 3.08 |
| Apr 4, 2007 | 3.22 | 3.21 |
| Apr 12, 2006 | 2.35 | 3.52 |
| Apr 14, 2005 | 2.34 | 3.92 |
Based on: 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01), 10-K (reporting date: 2019-02-02), 10-K (reporting date: 2018-02-03), 10-K (reporting date: 2017-01-28), 10-K (reporting date: 2016-01-30), 10-K (reporting date: 2015-01-31), 10-K (reporting date: 2014-02-01), 10-K (reporting date: 2013-02-02), 10-K (reporting date: 2012-01-28), 10-K (reporting date: 2011-01-29), 10-K (reporting date: 2010-01-30), 10-K (reporting date: 2009-01-31), 10-K (reporting date: 2008-02-02), 10-K (reporting date: 2007-02-03), 10-K (reporting date: 2006-01-28), 10-K (reporting date: 2005-01-29).
Comparison to Industry (Consumer Staples)
Dollar Tree Inc., P/BV, long-term trends, comparison to industry (consumer staples)
| Dollar Tree Inc. | Consumer Staples | |
|---|---|---|
| Mar 15, 2022 | 4.41 | 8.11 |
| Mar 16, 2021 | 3.49 | 8.15 |
| Mar 20, 2020 | 2.88 | 7.44 |
| Mar 27, 2019 | 4.40 | 7.21 |
| Mar 16, 2018 | 3.16 | 5.76 |
| Mar 28, 2017 | 3.36 | 5.70 |
| Mar 28, 2016 | 4.31 | 5.35 |
| Mar 13, 2015 | 9.44 | 5.06 |
| Mar 14, 2014 | 9.50 | 4.55 |
| Mar 15, 2013 | 5.96 | 4.08 |
| Mar 15, 2012 | 8.04 | 3.89 |
| Mar 17, 2011 | 4.46 | 3.50 |
| Mar 19, 2010 | 3.45 | 3.45 |
| Mar 26, 2009 | 3.15 | 3.38 |
| Apr 1, 2008 | 2.65 | 3.48 |
| Apr 4, 2007 | 3.22 | 3.56 |
| Apr 12, 2006 | 2.35 | 3.66 |
| Apr 14, 2005 | 2.34 | 4.47 |
Based on: 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01), 10-K (reporting date: 2019-02-02), 10-K (reporting date: 2018-02-03), 10-K (reporting date: 2017-01-28), 10-K (reporting date: 2016-01-30), 10-K (reporting date: 2015-01-31), 10-K (reporting date: 2014-02-01), 10-K (reporting date: 2013-02-02), 10-K (reporting date: 2012-01-28), 10-K (reporting date: 2011-01-29), 10-K (reporting date: 2010-01-30), 10-K (reporting date: 2009-01-31), 10-K (reporting date: 2008-02-02), 10-K (reporting date: 2007-02-03), 10-K (reporting date: 2006-01-28), 10-K (reporting date: 2005-01-29).