Risk factor
Negligible price volatility
Profitability factor
Very strong margins and returns
About
Dollarama Inc. is a prominent Canadian retailer that manages a vast network of dollar stores across the country. Its outlets provide customers with a wide array of general merchandise, consumable goods, and seasonal products. The company extends its reach through an e-commerce platform, enabling online purchases. By January 30, 2022, Dollarama's operational footprint consisted of 1,421 retail locations. Founded in 1992, the business was initially incorporated as Dollarama Capital Corporation before officially changing its name to Dollarama Inc. in September 2009. Its corporate headquarters are located in Montreal, Canada.
Company Valuation
Based on key historical and expected multiples, the stock is greatly overvalued relative to its peers. In particular, the stock is overpriced on P/E, 'expensive' on EV/EB
Target Price
The average target price of DOL.TO is 210 and suggests 10.5% upside potential. Usually, this means a HOLD recommendation among investment firms. This neutral recommendati