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Dollar TreeDLTR -1.06%80 Debt-to-EBITDA is 2.90 as of Apr. 2026, which is 19% below its 10-year median of 3.57. GuruFocus rates DLTR with a GF Score™ of 80/100 and a GF Value™ of $147.29 (Modestly Undervalued). The stock has 4 warning signs investors should review. Among 254 Retail - Defensive companies, Dollar Tree ranks worse than 66.54% on this metric.
Debt-to-EBITDA measures a company's ability to pay off its debt.
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt. According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
The historical rank and industry rank for Dollar Tree's Debt-to-EBITDA or its related term are showing as below:
DLTR'
s Debt-to-EBITDA Range Over the Past 10 Years
Min: -13.42 Med: 3.57 Max: 5.26
Current: 3.14
During the past 13 years, the highest Debt-to-EBITDA Ratio of Dollar Tree was 5.26. The lowest was -13.42. And the median was 3.57.
DLTR's Debt-to-EBITDA is ranked worse than 66.54% of 254
companies
in the Retail - Defensive industry
Industry Median: 2.215
vs DLTR: 3.14
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt.
According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
Dollar Tree Debt-to-EBITDA Related Terms
Dollar Tree Debt-to-EBITDA Historical Data
* Premium members only.
The historical data trend for Dollar Tree's Debt-to-EBITDA 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.
For the Discount Stores subindustry, Dollar Tree's Debt-to-EBITDA, along with its competitors' market caps and Debt-to-EBITDA 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 Debt-to-EBITDA vs Retail - Defensive Industry
For the Retail - Defensive industry and Consumer Defensive sector, Dollar Tree's Debt-to-EBITDA distribution charts can be found below:
* The bar in red indicates where Dollar Tree's Debt-to-EBITDA falls into.
* 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.
In the calculation of annual Debt-to-EBITDA, the EBITDA of the last fiscal year is used. In calculating the annualized quarterly data,
the EBITDA data used here is four times the quarterly (Apr. 2026) EBITDA data.
Dollar Tree (DLTR) has a Debt-to-EBITDA of 2.90 as of Apr. 2026. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Dollar Tree. This is 19% below median its historical median of 3.57. According to the industry distribution chart, Dollar Tree ranks #169 out of 254 companies in the Retail - Defensive industry, placing it in the top 66.5%.
Is Dollar Tree's Debt-to-EBITDA too high?
Dollar Tree's current Debt-to-EBITDA of 2.90 is 19% below median its 10-year median of 3.57. The Retail - Defensive industry median Debt-to-EBITDA is 2.22. Dollar Tree's value of 2.90 is 30.9% above this industry median. Based on the distribution chart, Dollar Tree ranks #169 out of 254 companies in the Retail - Defensive industry, which is below the industry midpoint. Overall, Dollar Tree has a GF Score™ of 80/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Dollar Tree's Debt-to-EBITDA compare to DG and BJ?
According to the Retail - Defensive industry distribution chart, Dollar Tree ranks #169 out of 254 companies for Debt-to-EBITDA. This places Dollar Tree in the lower half of its industry. The industry median Debt-to-EBITDA is 2.22. Dollar Tree's value of 2.90 is 30.9% above this benchmark. While the company's 10-year median is 3.57 vs. the industry median of 2.22, 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 Debt-to-EBITDA for a Retail - Defensive company?
The median Debt-to-EBITDA among Retail - Defensive companies is 2.22, based on 254 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-EBITDA significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-EBITDA should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Dollar Tree's current Debt-to-EBITDA of 2.90 is 30.9% 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 Debt-to-EBITDA mean?
A high Debt-to-EBITDA can signal that a stock is expensive relative to its fundamentals. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Dollar Tree. For the Retail - Defensive industry, the median Debt-to-EBITDA is 2.22 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Dollar Tree's current Debt-to-EBITDA is 2.90, which is 19% below median its own 10-year median of 3.57. 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 (DLTR) is currently considered Modestly Undervalued. The stock's GF Value™ is $147.29, compared to a current price of $127.21 — trading 13.6% below its estimated fair value. The current Debt-to-EBITDA is 2.90, which is 19% below median its 10-year median of 3.57 and 30.9% above the Retail - Defensive industry median of 2.22. Dollar Tree's overall GF Score™ is 80/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Debt-to-EBITDA calculated?
Debt-to-EBITDA is calculated from a company's financial statements. For Dollar Tree (DLTR), the current Debt-to-EBITDA is 2.90 as of Apr. 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 (DLTR) Overvalued in 2026?
Based on GuruFocus' analysis, Dollar Tree stock appears to be undervalued.
The current stock price of $127.21 is trading 13.6% below its estimated GF Value™ of $147.29.
GuruFocus considers Dollar Tree to be Modestly Undervalued.
Key valuation signals for DLTR:
Debt-to-EBITDA: 2.90 (19% below median its 10-year median of 3.57)
GF Value™: $147.29 vs. price of $127.21 (13.6% below fair value)
Industry Position: 30.9% above the Retail - Defensive median (#169 of 254)
No single metric tells the full story. See the DLTR 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.
80GF Score
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