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Dollar TreeLTS:0IC8 +1.05%77 Cyclically Adjusted PB Ratio is 3.75 as of Sep. 02, 2026, which is 34% below its 10-year median of 5.66. GuruFocus rates LTS:0IC8 with a GF Score™ of 77/100 and a GF Value™ of $143.42 (Fairly Valued). The stock has 3 warning signs investors should review. Among 217 Retail - Defensive companies, Dollar Tree ranks worse than 75.58% on this metric.
The historical rank and industry rank for Dollar Tree's Cyclically Adjusted PB Ratio or its related term are showing as below:
LTS:0IC8'
s Cyclically Adjusted PB Ratio Range Over the Past 10 Years
Min: 1.84 Med: 5.66 Max: 11.21
Current: 3.81
During the past years, Dollar Tree's highest Cyclically Adjusted PB Ratio was 11.21. The lowest was 1.84. And the median was 5.66.
LTS:0IC8's Cyclically Adjusted PB Ratio is ranked worse than 75.58% of 217
companies
in the Retail - Defensive industry
Industry Median: 1.62
vs LTS:0IC8: 3.81
The Shiller PE Ratio was first used by professor Robert Shiller. He uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings per share of a company over the past 10 years. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted PB Ratio. The Cyclically Adjusted Book per Share is the average of the inflation adjusted book value per share of a company over the past 10 years.
Dollar Tree's adjusted book value per share data for the three months ended in Jul. 2026 was $18.251. Add all the adjusted book value per share for the past 10 years together and divide the count will get our Cyclically Adjusted Book per Share, which is $34.76 for the trailing ten years ended in Jul. 2026.
Shiller PE for Stocks: The True Measure of Stock Valuation
Dollar Tree (LTS:0IC8) Cyclically Adjusted PB Ratio Explanation
Compared with the regular PB Ratio, which works poorly for cyclical businesses, the Cyclically Adjusted PB Ratio smoothed out the fluctuations of book value during business cycles. Therefore it is more accurate in reflecting the valuation of the company.
If a company has consistent business performance, the Cyclically Adjusted PB Ratio should give similar results to regular PB Ratio.
Dollar Tree Cyclically Adjusted PB Ratio Related Terms
Dollar Tree Cyclically Adjusted PB Ratio Historical Data
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The historical data trend for Dollar Tree's Cyclically Adjusted PB Ratio can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
LTS:0IC8 vs DG, BJ, TBBB: Cyclically Adjusted PB Ratio Comparison
For the Discount Stores subindustry, Dollar Tree's Cyclically Adjusted PB Ratio, along with its competitors' market caps and Cyclically Adjusted PB Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Dollar Tree Cyclically Adjusted PB Ratio vs Retail - Defensive Industry
For the Retail - Defensive industry and Consumer Defensive sector, Dollar Tree's Cyclically Adjusted PB Ratio distribution charts can be found below:
* The bar in red indicates where Dollar Tree's Cyclically Adjusted PB Ratio falls into.
Dollar Tree Cyclically Adjusted PB Ratio Calculation
Like the Shiller PE Ratio, the Cyclically Adjusted PB Ratio takes the Book Value per Share from the past 10 years, adjusts it for inflation, and then calculates the average. This average is then used for the P/B calculation. Because it considers this 10-year average, it's often referred to as the CAPB Ratio.
The Shiller PE Ratio was first used by professor Robert Shiller to measure the valuation of the overall market. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted PB Ratio.
Dollar Tree's Cyclically Adjusted PB Ratio for today is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Please note that we use the CPI data of the country/region where the company is headquartered. If the CPI data for that country/region is not available, then we will use the CPI data of the United States as default.
What does a Cyclically Adjusted PB Ratio of 3.75 mean?
Dollar Tree (LTS:0IC8) has a Cyclically Adjusted PB Ratio of 3.75 as of Sep. 02, 2026. Cyclically Adjusted PB Ratio is the ratio of share price to a company's inflation-adjusted book value per share over a 10-year period. View historical data on Dollar Tree and its competitors. This is 34% below median its historical median of 5.66. Over the past decade, Dollar Tree's Cyclically Adjusted PB Ratio has ranged from 1.84 to 11.21. According to the industry distribution chart, Dollar Tree ranks #164 out of 217 companies in the Retail - Defensive industry, placing it in the top 75.6%.
Is Dollar Tree's Cyclically Adjusted PB Ratio too high?
Dollar Tree's current Cyclically Adjusted PB Ratio of 3.75 is 34% below median its 10-year median of 5.66. Over the past 10 years, this metric has ranged from a low of 1.84 to a high of 11.21. The Retail - Defensive industry median Cyclically Adjusted PB Ratio is 1.62. Dollar Tree's value of 3.75 is 131.5% above this industry median. Based on the distribution chart, Dollar Tree ranks #164 out of 217 companies in the Retail - Defensive industry, which is in the bottom quartile relative to peers. Overall, Dollar Tree has a GF Score™ of 77/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Dollar Tree's Cyclically Adjusted PB Ratio compare to DG and BJ?
According to the Retail - Defensive industry distribution chart, Dollar Tree ranks #164 out of 217 companies for Cyclically Adjusted PB Ratio. This places Dollar Tree in the lower half of its industry. The industry median Cyclically Adjusted PB Ratio is 1.62. Dollar Tree's value of 3.75 is 131.5% above this benchmark. Historically, Dollar Tree's own Cyclically Adjusted PB Ratio has ranged from 1.84 to 11.21 over the past decade. While the company's 10-year median is 5.66 vs. the industry median of 1.62, Dollar Tree has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Cyclically Adjusted PB Ratio for a Retail - Defensive company?
The median Cyclically Adjusted PB Ratio among Retail - Defensive companies is 1.62, based on 217 companies in the industry. Companies in the top quartile (top 25%) have a Cyclically Adjusted PB Ratio significantly above this median, while those in the bottom quartile fall well below. However, Cyclically Adjusted PB Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Dollar Tree's current Cyclically Adjusted PB Ratio of 3.75 is 131.5% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Cyclically Adjusted PB Ratio mean?
A high Cyclically Adjusted PB Ratio can signal that a stock is expensive relative to its fundamentals. Cyclically Adjusted PB Ratio is the ratio of share price to a company's inflation-adjusted book value per share over a 10-year period. View historical data on Dollar Tree and its competitors. For the Retail - Defensive industry, the median Cyclically Adjusted PB Ratio is 1.62 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Dollar Tree's current Cyclically Adjusted PB Ratio is 3.75, which is 34% below median its own 10-year median of 5.66. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Dollar Tree stock overvalued right now?
Based on GuruFocus' analysis, Dollar Tree (LTS:0IC8) is currently considered Fairly Valued. The stock's GF Value™ is $143.42, compared to a current price of $130.21 — trading 9.2% below its estimated fair value. The current Cyclically Adjusted PB Ratio is 3.75, which is 34% below median its 10-year median of 5.66 and 131.5% above the Retail - Defensive industry median of 1.62. Dollar Tree's overall GF Score™ is 77/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Cyclically Adjusted PB Ratio calculated?
Cyclically Adjusted PB Ratio is calculated from a company's financial statements. For Dollar Tree (LTS:0IC8), the current Cyclically Adjusted PB Ratio is 3.75 as of Sep. 02, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Dollar Tree (LTS:0IC8) Overvalued in 2026?
Based on GuruFocus' analysis, Dollar Tree stock appears to be undervalued.
The current stock price of $130.21 is trading 9.2% below its estimated GF Value™ of $143.42.
GuruFocus considers Dollar Tree to be Fairly Valued.
Key valuation signals for LTS:0IC8:
Cyclically Adjusted PB Ratio: 3.75 (34% below median its 10-year median of 5.66)
GF Value™: $143.42 vs. price of $130.21 (9.2% below fair value)
Industry Position: 131.5% above the Retail - Defensive median (#164 of 217)
No single metric tells the full story. See the LTS:0IC8 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Founded in 1986, Dollar Tree operates almost 9,000 small-box discount stores across the United States and Canada, offering roughly 85% of its merchandise under $2. The chain targets value-conscious suburban and urban shoppers with a mix of consumables (49% of sales), variety (45%), and seasonal goods (6%). In fiscal 2025, Dollar Tree generated over $19 billion in sales, through its multi-price strategy, higher-margin discretionary assortments, and private-label products that account for nearly one-third of sales.
77GF Score
Get the complete analysis for LTS:0IC8
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