Dollar General (MEX:DGG) Intrinsic Value: DCF (Dividends Based): MXN2,081.50 (As of Jul. 27, 2026) — 176298% Above Median

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Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
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Founder & CEO of GuruFocus
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MEX:DGG Dollar General Corp MEX:DGG
71 GF Score
Price MXN2,195.00
GF Value MXN2,200.52
Valuation Fairly Valued
! 3 Warning Signs
View Full Analysis

What is Dollar General Intrinsic Value: DCF (Dividends Based)?

Dollar General MEX:DGG 71 Intrinsic Value: DCF (Dividends Based) is MXN2,081.50 as of Jul. 27, 2026, which is 100% below its 10-year median of 1.18. GuruFocus rates MEX:DGG with a GF Score™ of 71/100 and a GF Value™ of MXN2,200.52 (Fairly Valued). The stock has 3 warning signs investors should review. Among 66 Retail - Defensive companies, Dollar General ranks worse than 1515150% on this metric.

As of today (2026-07-27), Dollar General's intrinsic value calculated from the Discounted Dividend model is MXN2,081.50.

Note: Discounted Dividend model is only suitable for companies who have a consistant distribution history. If the company's dividends does not remain steady over a long period, results may not be accurate due to the low consistency. The model is also only suitable for predictable companies (Business Predictability Rank higher than 1-Star) with dividend payments. If the company's Predictability Rank is 1-Star or Not Rated, or if the company does not pay dividend, the data will not be stored into our database.

Dollar General's Predictability Rank is 1-Star. Thus, this page is only used for demonstration purposes and the DCF related results in the screener and portfolio will appear as zero.

Margin of Safety % (DCF Dividends Based) using Discounted Dividend Model for Dollar General is -5.45%.

The historical rank and industry rank for Dollar General's Intrinsic Value: DCF (Dividends Based) or its related term are showing as below:

During the past 13 years, the highest Price-to-Intrinsic-Value-DCF (Dividends Based) Ratio of Dollar General was 1.87. The lowest was 0.59. And the median was 1.18.

MEX:DGG's Price-to-DCF (Dividends Based) is not ranked *
in the Retail - Defensive industry.
Industry Median: 0.99
* Ranked among companies with meaningful Price-to-DCF (Dividends Based) only.

Dollar General  (MEX:DGG) Intrinsic Value: DCF (Dividends Based) Explanation

Unlike valuation methods such as Net Current Asset Value, Tangible Book per Share, Graham Number, Median PS Value etc, discounted Dividends model evaluates the companies based on their power of future dividend distribution instead of their assets.


Be Aware

What you need to know about Discounted Dividends model:

1. The Discounted Dividends model evaluates a company based on its future dividends distribution power
2. Dividend growth is taken into account; therefore a company with a higher dividend growth rate is worth more if everything else is the same.
3. Since we are projecting future growth, it is assumed that the company will grow at the same rate as it did during the past 10 years. Therefore this model works better for the companies with consistently steady dividends distributed.
4. The Discounted Dividends model works poorly for inconsistent dividends distributor like high growth companies.
5. Your expected return from the investment is a reasonable discount rate assumption.
6. A larger margin of safety should be required for companies with less dividends distributed.

You can screen for stocks that trade below their Intrinsic Value: DCF (FCF Based) and Intrinsic Value: DCF (Earnings Based) and Intrinsic Value: DCF (Dividends Based) with the GuruFocus All-in-One Screener. Companies with a high Predictability Rank that trade at a discount to their Intrinsic Value: DCF (FCF Based) and Intrinsic Value: DCF (Earnings Based) can be found in the screen of Undervalued Predictable Companies.


Dollar General Intrinsic Value: DCF (Dividends Based) Related Terms


Dollar General Intrinsic Value: DCF (Dividends Based) Historical Data

* Premium members only.

The historical data trend for Dollar General's Intrinsic Value: DCF (Dividends Based) 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.

Dollar General Intrinsic Value: DCF (Dividends Based) Chart

Dollar General Annual Data
Trend Jan17 Jan18 Jan19 Jan20 Jan21 Jan22 Jan23 Jan24 Jan25 Jan26
Intrinsic Value: DCF (Dividends Based)
Get a 7-Day Free Trial Premium Member Only Premium Member Only 4,223.03 4,580.11 3,211.76 2,089.24 0.00

Dollar General Quarterly Data
Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24 Jul24 Oct24 Jan25 Apr25 Jul25 Oct25 Jan26 Apr26
Intrinsic Value: DCF (Dividends Based) Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1,990.23 2,024.29 2,155.41 0.00 0.00

MEX:DGG vs DLTR, BJ, PSMT: Intrinsic Value: DCF (Dividends Based) Comparison

For the Discount Stores subindustry, Dollar General's Price-to-DCF (Dividends Based), along with its competitors' market caps and Price-to-DCF (Dividends Based) 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 General Price-to-DCF (Dividends Based) vs Retail - Defensive Industry

For the Retail - Defensive industry and Consumer Defensive sector, Dollar General's Price-to-DCF (Dividends Based) distribution charts can be found below:

* The bar in red indicates where Dollar General's Price-to-DCF (Dividends Based) falls into.


MEX:DGG
71GF Score
Dollar General Corp MEX:DGG
Intrinsic Value: DCF (Dividends Based) is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Dollar General Intrinsic Value: DCF (Dividends Based) Calculation

This is the intrinsic value calculated from the Discounted Dividend Model with default parameters. The calculation method is the same as Discounted Cash Flow model except adjusted dividend are used in the calculation instead of free cash flow. This is the default method of calculation with GuruFocus DCF calculator.

Usually a two-stage model is used in calculating the intrinsic value with discounted cash flow model. The first stage is called growth stage; the second is called the terminal stage. In the growth stage the company grows at a faster rate. Because it cannot grow at that rate forever, a lower rate is used for the terminal stage.

GuruFocus DDM calculator is a two-stage model. The default values are defined as:

1. Discount Rate: d = 11%
A reasonable discount rate assumption should be at least the long term average return of the stock market, which can be estimated from risk free rate plus risk premium of stock market. GuruFocus uses 10-Year Treasury Constant Maturity Rate as the risk-free rate and rounded up to the nearest integer. It is updated daily. The current risk-free rate is 4.64%. Please go to Economic Indicators page for more information. Please note that we use the 10-Year Treasury Constant Maturity Rate of the country/region where the company is headquartered. If the data for that country/region is not available, then we will use the 10-Year Treasury Constant Maturity Rate of the United States as default. Then we added a risk premium of 6% to get the estimated discount rate. Some investors use their expected rate of return, which is also reasonable. A typical discount rate can be anywhere between 6% - 20%.

2. Dividend Growth Rate in the growth stage: g1 = 11.90%
The Growth Rate in the growth stage is initially set as the default 10-Year Dividend Growth Rate. In cases where the 10-year growth rate is unavailable, it defaults to using the 5-Year Dividend Growth Rate. If both the 10-year and 5-year growth rates are unavailable, the system defaults to the 3-Year Dividend Growth Rate.
However, it's important to note that there is a growth rate range. If the calculated growth rate exceeds 20%, it will be capped at 20%. Conversely, if the calculated growth rate falls below 5%, it will be adjusted to 5% to maintain a reasonable range.
=> Dollar General's average Dividend Growth Rate in the past 10 years was 11.90%, which is between 5% and 20%. => GuruFocus defaults => Growth Rate: 11.90%

3. Years of Growth Stage: y1 = 10

4. Terminal Growth Rate: g2 = 4%

5. Dividends per Share: adjusted dividends per share = MXN114.5763.
GuruFocus uses adjusted dividends per share by default to ensure that the valuation reflects the total value of the company, as the actual dividend is only a portion of the total value.

All of the default settings can be changed in the DCF calculator and the results are calculated automatically.

Dollar General's Intrinsic Value: DCF (Dividends Based) for today is calculated as:

Intrinsic Value: DCF (Dividends Based)=Dividends per Share*{[(1+g1)/(1+d)+(1+g1)^2/(1+d)^2+...+(1+g1)^10/(1+d)^10]
+(1+g1)^10/(1+d)^10*[(1+g2)/(1+d)+(1+g2)^2/(1+d)^2+...+(1+g2)^10/(1+d)^10]}

set x = (1+g1)/(1+d) = (1+0.119)/(1+0.11) = 1.0081081081081
and y = (1+g2)/(1+d) = (1+0.04)/(1+0.11) = 0.93693693693694

Intrinsic Value: DCF (Dividends Based)=Dividends per Share*{[x+x^2+...+x^10]+x^10*[y+y^2+...+y^10]}
=Dividends per Share*[x*(1-x^10)/(1-x)+x^10*y*(1-y^10)/(1-y)]
=114.5763*18.1669
=2,081.50

Margin of Safety % (DCF Dividends Based) = (Intrinsic Value: DCF (Dividends Based)-Current Price) /Intrinsic Value: DCF (Dividends Based)
= (2081.5 - 2195.00) / 2081.5
= -5.45 %

* 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.

What does a Intrinsic Value: DCF (Dividends Based) of MXN2,081.50 mean?
Dollar General (MEX:DGG) has a Intrinsic Value: DCF (Dividends Based) of MXN2,081.50 as of Jul. 27, 2026. Intrinsic Value: DCF (Dividends Based) is the stock value based on a two-stage discounted dividend model. View historical data on Dollar General and its competitors. This is 176298% above median its historical median of 1.18. Over the past decade, Dollar General's Intrinsic Value: DCF (Dividends Based) has ranged from 0.59 to 1.87. According to the industry distribution chart, Dollar General ranks #999999 out of 66 companies in the Retail - Defensive industry.
Is Dollar General's Intrinsic Value: DCF (Dividends Based) too high?
Dollar General's current Intrinsic Value: DCF (Dividends Based) of MXN2,081.50 is 176298% above median its 10-year median of 1.18. Over the past 10 years, this metric has ranged from a low of 0.59 to a high of 1.87. Based on the distribution chart, Dollar General ranks #999999 out of 66 companies in the Retail - Defensive industry, which is in the bottom quartile relative to peers. Overall, Dollar General has a GF Score™ of 71/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Dollar General's Intrinsic Value: DCF (Dividends Based) compare to DLTR and BJ?
According to the Retail - Defensive industry distribution chart, Dollar General ranks #999999 out of 66 companies for Intrinsic Value: DCF (Dividends Based). This places Dollar General in the lower half of its industry. The industry median Intrinsic Value: DCF (Dividends Based) is 0.99. Historically, Dollar General's own Intrinsic Value: DCF (Dividends Based) has ranged from 0.59 to 1.87 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Intrinsic Value: DCF (Dividends Based) for a Retail - Defensive company?
The median Intrinsic Value: DCF (Dividends Based) among Retail - Defensive companies is 0.99, based on 66 companies in the industry. Companies in the top quartile (top 25%) have a Intrinsic Value: DCF (Dividends Based) significantly above this median, while those in the bottom quartile fall well below. However, Intrinsic Value: DCF (Dividends Based) should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Intrinsic Value: DCF (Dividends Based) mean?
A high Intrinsic Value: DCF (Dividends Based) can signal that a stock is expensive relative to its fundamentals. Intrinsic Value: DCF (Dividends Based) is the stock value based on a two-stage discounted dividend model. View historical data on Dollar General and its competitors. For the Retail - Defensive industry, the median Intrinsic Value: DCF (Dividends Based) is 0.99 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Dollar General's current Intrinsic Value: DCF (Dividends Based) is MXN2,081.50, which is 176298% above median its own 10-year median of 1.18. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Dollar General stock overvalued right now?
Based on GuruFocus' analysis, Dollar General (MEX:DGG) is currently considered Fairly Valued. The stock's GF Value™ is MXN2,200.52, compared to a current price of MXN2,195.00 — trading 0.3% below its estimated fair value. The current Intrinsic Value: DCF (Dividends Based) is MXN2,081.50, which is 176298% above median its 10-year median of 1.18. Dollar General's overall GF Score™ is 71/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Intrinsic Value: DCF (Dividends Based) calculated?
Intrinsic Value: DCF (Dividends Based) is calculated from a company's financial statements. For Dollar General (MEX:DGG), the current Intrinsic Value: DCF (Dividends Based) is MXN2,081.50 as of Jul. 27, 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 General (MEX:DGG) Overvalued in 2026?

Based on GuruFocus' analysis, Dollar General stock appears to be undervalued. The current stock price of MXN2,195.00 is trading 0.3% below its estimated GF Value™ of MXN2,200.52. GuruFocus considers Dollar General to be Fairly Valued.

Key valuation signals for MEX:DGG:

  • Intrinsic Value: DCF (Dividends Based): MXN2,081.50 (176298% above median its 10-year median of 1.18)
  • GF Value™: MXN2,200.52 vs. price of MXN2,195.00 (0.3% below fair value)
  • GF Score™: 71/100 with 3 warning signs

No single metric tells the full story. See the MEX:DGG stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Dollar General Business Description

Address 100 Mission Ridge, Goodlettsville, TN, USA, 37072
Since its beginning in 1939, Dollar General has grown to become the largest dollar store operator in the United States, with more than 20,000 small-box discount stores across 48 states. The firm generated over $42 billion in fiscal 2025 sales. The retailer maintains a heavy concentration of stores in rural and low-income markets underserved by big-box retailers. It's 11,000 stock-keeping units, including 2,000 priced at $1 or less, span consumables (82% of sales), seasonal items (10%), home products (5%), and apparel (3%). More than 20% of sales are derived from private label.
71GF Score

Get the complete analysis for MEX:DGG

Intrinsic Value: DCF (Dividends Based) is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

MXN2,195.00
Price
MXN2,200.52
GF Value