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Dollar general to grow

Published
11 Dec 25
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Bauyrzhan's Fair Value
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1Y
69.2%
7D
5.9%

Author's Valuation

US$158.916.5% undervalued intrinsic discount

Bauyrzhan's Fair Value

I was studying the company Dollar General #DG, a company that operates regular convenience stores in the USA targeting low and low-middle class audiences (that's how they politically correctly refer to poor people). They're interesting because their products are cheap, but per gram or liter of product they sell much more expensively. For example, they take a 1-kilogram package of detergent for 30 dollars, break it into 100-gram portions, and sell them for 5 dollars each (66% more expensive per gram). My narrative is growth of revenue and profit margin.

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Disclaimer

The user Bauyrzhan has a position in NYSE:DG. Simply Wall St has no position in any of the companies mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The author of this narrative is not affiliated with, nor authorised by Simply Wall St as a sub-authorised representative. This narrative is general in nature and explores scenarios and estimates created by the author. The narrative does not reflect the opinions of Simply Wall St, and the views expressed are the opinion of the author alone, acting on their own behalf. These scenarios are not indicative of the company's future performance and are exploratory in the ideas they cover. The fair value estimates are estimations only, and does not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that the author's analysis may not factor in the latest price-sensitive company announcements or qualitative material.

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