Dollar Tree Inc., FCFF calculation

US$ in thousands

12 months ended:	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020	Feb 2, 2019	Feb 3, 2018	Jan 28, 2017
Net income (loss)	1,327,900)	1,341,900)	827,000)	(1,590,800)	1,714,300)	896,200)
Net noncash charges	836,600)	824,200)	1,060,300)	3,578,800)	248,200)	639,600)
Changes in operating assets and liabilities	(733,000)	550,200)	(17,500)	(222,000)	(452,300)	137,500)
Net cash provided by operating activities	1,431,500)	2,716,300)	1,869,800)	1,766,000)	1,510,200)	1,673,300)
Cash paid for interest, net of amounts capitalized, net of tax¹	143,345)	117,886)	128,161)	302,886)	193,674)	221,813)
Capitalized interest, net of tax²	895)	2,467)	1,807)	3,318)	1,555)	1,618)
Capital expenditures	(1,021,200)	(898,800)	(1,034,800)	(817,100)	(632,200)	(564,700)
Free cash flow to the firm (FCFF)	554,541)	1,937,853)	964,968)	1,255,104)	1,073,229)	1,332,031)

Based on: 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01), 10-K (reporting date: 2019-02-02), 10-K (reporting date: 2018-02-03), 10-K (reporting date: 2017-01-28).

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Item	Description	The company
FCFF	Free cash flow to the firm is the cash flow available to the Dollar Tree Inc. suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made.	Dollar Tree Inc. FCFF increased from 2020 to 2021 but then decreased significantly from 2021 to 2022.

Dollar Tree Inc., interest paid, net of tax calculation

US$ in thousands

12 months ended:	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020	Feb 2, 2019	Feb 3, 2018	Jan 28, 2017
Effective Income Tax Rate (EITR)
EITR¹	18.60%	22.90%	24.70%	21.00%	32.40%	32.60%
Interest Paid, Net of Tax
Cash paid for interest, net of amounts capitalized, before tax	176,100)	152,900)	170,200)	383,400)	286,500)	329,100)
Less: Cash paid for interest, net of amounts capitalized, tax²	32,755)	35,014)	42,039)	80,514)	92,826)	107,287)
Cash paid for interest, net of amounts capitalized, net of tax	143,345)	117,886)	128,161)	302,886)	193,674)	221,813)
Interest Costs Capitalized, Net of Tax
Capitalized interest, before tax	1,100)	3,200)	2,400)	4,200)	2,300)	2,400)
Less: Capitalized interest, tax³	205)	733)	593)	882)	745)	782)
Capitalized interest, net of tax	895)	2,467)	1,807)	3,318)	1,555)	1,618)

Based on: 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01), 10-K (reporting date: 2019-02-02), 10-K (reporting date: 2018-02-03), 10-K (reporting date: 2017-01-28).

¹ See details »

² 2022 Calculation
Cash paid for interest, net of amounts capitalized, tax = Cash paid for interest, net of amounts capitalized × EITR
= 176,100 × 18.60% = 32,755

³ 2022 Calculation
Capitalized interest, tax = Capitalized interest × EITR
= 1,100 × 18.60% = 205

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Dollar Tree Inc., current EV/FCFF calculation, comparison to benchmarks

Selected Financial Data (US$ in thousands)
Enterprise value (EV)	36,133,978)
Free cash flow to the firm (FCFF)	554,541)
Valuation Ratio
EV/FCFF	65.16
Benchmarks
EV/FCFF, Competitors¹
Costco Wholesale Corp.	62.43
Dollar General Corp.	22.95
Target Corp.	16.23
Walmart Inc.	43.16
EV/FCFF, Sector
Consumer Staples Distribution & Retail	53.37
EV/FCFF, Industry
Consumer Staples	35.11

Based on: 10-K (reporting date: 2022-01-29).

¹ Click competitor name to see calculations.

If the company EV/FCFF is lower then the EV/FCFF of benchmark then company is relatively undervalued.
Otherwise, if the company EV/FCFF is higher then the EV/FCFF of benchmark then company is relatively overvalued.

Dollar Tree Inc., historical EV/FCFF calculation, comparison to benchmarks

	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020	Feb 2, 2019	Feb 3, 2018	Jan 28, 2017
Selected Financial Data (US$ in thousands)
Enterprise value (EV)¹	36,437,266)	27,261,718)	21,223,520)	28,668,857)	27,305,122)	23,540,007)
Free cash flow to the firm (FCFF)²	554,541)	1,937,853)	964,968)	1,255,104)	1,073,229)	1,332,031)
Valuation Ratio
EV/FCFF³	65.71	14.07	21.99	22.84	25.44	17.67
Benchmarks
EV/FCFF, Competitors⁴
Costco Wholesale Corp.	74.47	38.43	26.70	37.24	—	—
Dollar General Corp.	29.27	16.16	25.20	22.20	—	—
Target Corp.	20.94	11.33	14.93	17.80	—	—
Walmart Inc.	33.26	14.86	22.39	17.27	—	—
EV/FCFF, Sector
Consumer Staples Distribution & Retail	35.19	17.02	22.34	20.10	—	—
EV/FCFF, Industry
Consumer Staples	27.96	19.75	21.80	22.08	—	—

Based on: 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01), 10-K (reporting date: 2019-02-02), 10-K (reporting date: 2018-02-03), 10-K (reporting date: 2017-01-28).

¹ See details »

² See details »

³ 2022 Calculation
EV/FCFF = EV ÷ FCFF
= 36,437,266 ÷ 554,541 = 65.71

⁴ Click competitor name to see calculations.

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Valuation ratio	Description	The company
EV/FCFF	Enterprise value to free cash flow to the firm is whole company valuation indicator.	Dollar Tree Inc. EV/FCFF ratio decreased from 2020 to 2021 but then increased from 2021 to 2022 exceeding 2020 level.

Dollar Tree Inc. (NASDAQ:DLTR)

Enterprise Value to FCFF (EV/FCFF)

Free Cash Flow to The Firm (FCFF)

Interest Paid, Net of Tax

Enterprise Value to FCFF Ratio, Current

Enterprise Value to FCFF Ratio, Historical