skip to content
  1. Home
  2. >
  3. Questions
  4. >
  5. DOL: Is DOL over valued today and still riding the pandemic spending tail wind in your view? [Dollarama Inc.]
You can view 2 more answers this month. Sign up for a free trial for unlimited access.

Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: Is DOL over valued today and still riding the pandemic spending tail wind in your view? Any idea of a “true” price today?
Asked by William Ross on January 31, 2024
5i Research Answer:

Historical P/E multiples are 19X to 44X, so a very wide range there.  Today it is 29X, more or less at the mid-point. Growth has been higher than expected, and the company is doing much much better than US peers. It expects same store growth to be a very impressive 11% to 12% this year, up from prior expectations. It has recovered well from inflationary pressures. The company also keeps buying back stock. Share count has gone from 417M to 281M in the past 10 years. Overall, with a strong outlook, we would not consider it overvalued. It is 'expensive' but it generally always has been due to its consistent growth. We would like it 'better' at $95, but that doesn't mean it is going to get there. But stocks don't go straight up, and in a weak market event or some other issue there could be a chance to get in cheaper.