Dollar Tree Stock Market Value
| DLTR Stock | USD 65.76 2.58 4.08% |
| Symbol | Dollar |
Dollar Tree Price To Book Ratio
Is Consumer Staples Distribution & Retail space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Dollar Tree. If investors know Dollar will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Dollar Tree listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.32) | Earnings Share (4.81) | Revenue Per Share 142.439 | Quarterly Revenue Growth 0.007 | Return On Assets 0.0457 |
The market value of Dollar Tree is measured differently than its book value, which is the value of Dollar that is recorded on the company's balance sheet. Investors also form their own opinion of Dollar Tree's value that differs from its market value or its book value, called intrinsic value, which is Dollar Tree's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Dollar Tree's market value can be influenced by many factors that don't directly affect Dollar Tree's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Dollar Tree's value and its price as these two are different measures arrived at by different means. Investors typically determine if Dollar Tree is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Dollar Tree's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
Dollar Tree 'What if' Analysis
In the world of financial modeling, what-if analysis is part of sensitivity analysis performed to test how changes in assumptions impact individual outputs in a model. When applied to Dollar Tree's stock what-if analysis refers to the analyzing how the change in your past investing horizon will affect the profitability against the current market value of Dollar Tree.
| 10/23/2024 |
| 11/22/2024 |
If you would invest 0.00 in Dollar Tree on October 23, 2024 and sell it all today you would earn a total of 0.00 from holding Dollar Tree or generate 0.0% return on investment in Dollar Tree over 30 days. Dollar Tree is related to or competes with Dicks Sporting, Williams Sonoma, and Dillards. The Dollar Tree segment offers merchandise at the fixed price of 1.25 More
Dollar Tree Upside/Downside Indicators
Understanding different market momentum indicators often help investors to time their next move. Potential upside and downside technical ratios enable traders to measure Dollar Tree's stock current market value against overall market sentiment and can be a good tool during both bulling and bearish trends. Here we outline some of the essential indicators to assess Dollar Tree upside and downside potential and time the market with a certain degree of confidence.
| Information Ratio | (0.19) | |||
| Maximum Drawdown | 22.95 | |||
| Value At Risk | (3.83) | |||
| Potential Upside | 3.3 |
Dollar Tree Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for Dollar Tree's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Dollar Tree's standard deviation. In reality, there are many statistical measures that can use Dollar Tree historical prices to predict the future Dollar Tree's volatility.| Risk Adjusted Performance | (0.11) | |||
| Jensen Alpha | (0.58) | |||
| Total Risk Alpha | (1.04) | |||
| Treynor Ratio | 1.49 |
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Dollar Tree's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
Dollar Tree Backtested Returns
Dollar Tree secures Sharpe Ratio (or Efficiency) of -0.14, which denotes the company had a -0.14% return per unit of risk over the last 3 months. Dollar Tree exposes twenty-three different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please confirm Dollar Tree's Standard Deviation of 3.76, mean deviation of 2.2, and Variance of 14.13 to check the risk estimate we provide. The firm shows a Beta (market volatility) of -0.41, which means possible diversification benefits within a given portfolio. As returns on the market increase, returns on owning Dollar Tree are expected to decrease at a much lower rate. During the bear market, Dollar Tree is likely to outperform the market. At this point, Dollar Tree has a negative expected return of -0.53%. Please make sure to confirm Dollar Tree's standard deviation, potential upside, as well as the relationship between the Potential Upside and day median price , to decide if Dollar Tree performance from the past will be repeated at some point in the near future.
Auto-correlation | -0.55 |
Good reverse predictability
Dollar Tree has good reverse predictability. Overlapping area represents the amount of predictability between Dollar Tree time series from 23rd of October 2024 to 7th of November 2024 and 7th of November 2024 to 22nd of November 2024. The more autocorrelation exist between current time interval and its lagged values, the more accurately you can make projection about the future pattern of Dollar Tree price movement. The serial correlation of -0.55 indicates that about 55.0% of current Dollar Tree price fluctuation can be explain by its past prices.
| Correlation Coefficient | -0.55 | |
| Spearman Rank Test | 0.09 | |
| Residual Average | 0.0 | |
| Price Variance | 2.98 |
Dollar Tree lagged returns against current returns
Autocorrelation, which is Dollar Tree stock's lagged correlation, explains the relationship between observations of its time series of returns over different periods of time. The observations are said to be independent if autocorrelation is zero. Autocorrelation is calculated as a function of mean and variance and can have practical application in predicting Dollar Tree's stock expected returns. We can calculate the autocorrelation of Dollar Tree returns to help us make a trade decision. For example, suppose you find that Dollar Tree has exhibited high autocorrelation historically, and you observe that the stock is moving up for the past few days. In that case, you can expect the price movement to match the lagging time series.
Current and Lagged Values |
| Timeline |
Dollar Tree regressed lagged prices vs. current prices
Serial correlation can be approximated by using the Durbin-Watson (DW) test. The correlation can be either positive or negative. If Dollar Tree stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Dollar Tree stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Dollar Tree stock over time.
Current vs Lagged Prices |
| Timeline |
Dollar Tree Lagged Returns
When evaluating Dollar Tree's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of Dollar Tree stock have on its future price. Dollar Tree autocorrelation represents the degree of similarity between a given time horizon and a lagged version of the same horizon over the previous time interval. In other words, Dollar Tree autocorrelation shows the relationship between Dollar Tree stock current value and its past values and can show if there is a momentum factor associated with investing in Dollar Tree.
Regressed Prices |
| Timeline |
Pair Trading with Dollar Tree
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Dollar Tree position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Dollar Tree will appreciate offsetting losses from the drop in the long position's value.Moving together with Dollar Stock
Moving against Dollar Stock
| 0.76 | WMT | Walmart Aggressive Push | PairCorr |
| 0.74 | DDL | Dingdong ADR | PairCorr |
| 0.67 | WILC | G Willi Food Trending | PairCorr |
| 0.66 | KR | Kroger Company Earnings Call This Week | PairCorr |
| 0.65 | AVO | Mission Produce Fiscal Year End 19th of December 2024 | PairCorr |
The ability to find closely correlated positions to Dollar Tree could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Dollar Tree when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Dollar Tree - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Dollar Tree to buy it.
The correlation of Dollar Tree is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Dollar Tree moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Dollar Tree moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Dollar Tree can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Additional Tools for Dollar Stock Analysis
When running Dollar Tree's price analysis, check to measure Dollar Tree's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Dollar Tree is operating at the current time. Most of Dollar Tree's value examination focuses on studying past and present price action to predict the probability of Dollar Tree's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Dollar Tree's price. Additionally, you may evaluate how the addition of Dollar Tree to your portfolios can decrease your overall portfolio volatility.