A Canadian dollar-store chain that has rewarded patient shareholders for a decade now stands at a crossroads familiar to every long-term investor: whether a proven record is worth paying a premium for today. Dollarama, listed on the TSX, has compounded its shareholders' capital at over 21% a year, carried by earnings that grew faster still. Yet its price now sits high against its own recent history, and so the question put to readers on November 26, 2025, is less about the company's quality than about the old tension between the patience that builds fortunes and the discipline that protects th
Dollarama: Two Reasons to Buy Before Year-End, One Reason to Wait
A long record that rewards patience, and a multiple that leaves less room for error
Mark
So what is this column actually arguing?
Mimi
Both sides. Buy now because the company is excellent and December can be kind to stocks like this, or wait because the price is steep relative to its own history.
Mark
How good has the record been?
Mimi
Over ten years, more than 600% total return, a 21.4% compound annual rate. Revenue grew 10.7% a year, and normalized earnings per share grew 18.7%.
Luke
Worth noting that's past performance. The column uses it to argue the premium is earned, but it can't tell us the next ten years look the same.
Mark
And the valuation concern?
Mimi
A forward P/E of about 42, against a three-year average of 31.2. The column calls it nearly the highest ever.
Luke
Forward P/E rests on analyst earnings estimates, so it's a projection, not a fact. And 'nearly the highest ever' is the author's characterization; no chart or data series is shown.
Mark
What about the Santa Claus rally idea?
Mimi
The author says Dollarama is the type of stock that can see one, and that buying before tax-loss selling ends could help.
Luke
That's a hedge, not a forecast. 'Can see' and 'could continue to climb' promise nothing, and no evidence is offered that it's happened with this stock before.
Mark
So what's the takeaway?
Mimi
If you own it, you can be patient. If you don't, the column leans on long-term holding over timing.
Le Pouls
- Dollarama's forward P/E near 42x sits well above its three-year average of 31.2x, leaving little margin for disappointment.
- Investors are split between buying a proven compounder now and waiting for a cheaper entry point.
- Year-end tax-loss selling and a possible Santa Claus rally could push the shares in either direction through December.
- The stock already trades near the top of its 52-week range, so timing decisions carry real weight.
- The decade-long record of over 600% total return keeps the bullish case firmly alive.
A Canadian dollar-store chain that has rewarded patient shareholders for a decade now stands at a crossroads familiar to every long-term investor: whether a proven record is worth paying a premium for today. Dollarama, listed on the TSX, has compounded its shareholders' capital at over 21% a year, carried by earnings that grew faster still. Yet its price now sits high against its own recent history, and so the question put to readers on November 26, 2025, is less about the company's quality than about the old tension between the patience that builds fortunes and the discipline that protects them.
A Motley Fool Canada column asked a question many TSX investors are quietly wrestling with: Dollarama is widely regarded as one of the best stocks in the country, so should you buy it now, or wait for a better moment?
The case for the company rests on its record. Over the past decade the shares have returned more than 600 percent, a compound annual rate of 21.4 percent. Normalized earnings per share grew even faster, at 18.7 percent a year, a gap the author treats as the number that matters most. In a market where uncertainty lingers and investors want both steadiness and growth, the stock stands out.
The argument for buying now leans on Warren Buffett's principle that a wonderful company at a fair price beats a fair company at a wonderful price. Dollarama will almost certainly never look cheap, the author concedes, but its consistent above-average returns have justified its premium over time. Buying for the long haul, the piece suggests, softens the blow of short-term declines. A seasonal rally into year-end could also reward those who act before December ends.
The reason to hesitate is valuation. At roughly 42 times forward earnings, the multiple is close to its highest level ever, far above the three-year average of 31.2 times. For current shareholders who want to add to their position, the column's advice is that waiting costs little, since many high-quality companies are currently fairly valued or modestly discounted.
The column does not settle the debate. It sets a long record of rewarded patience against a price that leaves less room for error. For anyone weighing entry timing, the near-term signals to watch are whether December's tax-loss selling and any seasonal rally move the shares, and whether the forward multiple drifts back toward its historical average.
The question a Motley Fool Canada column put to readers on November 26, 2025, was a simple one: Dollarama (TSX:DOL) is widely regarded as one of the best stocks on the TSX, so should an investor buy it now or wait for a better entry point? The piece is an opinion column, and it lands on both sides of the question.
The case for the company starts with the record. Over the past decade, the column says, Dollarama shares have returned more than 600% in total, which works out to a compound annual growth rate of 21.4%. Revenue grew at a compound annual rate of 10.7% over the same stretch. Normalized earnings per share grew faster, at 18.7% a year, and the column treats that gap as the more important number.
The author frames the stock as a fit for the current market, where uncertainty remains elevated and investors want both defensive holdings and names with growth potential. Dollarama, in this telling, is at the top of many investors' radars for that reason.
The first argument for buying now is about quality over price. The column cites Warren Buffett's line that it is far better to buy a wonderful company at a fair price than a fair company at a wonderful price. The author says Dollarama will almost certainly never look undervalued and often trades at a growth premium, but argues that its consistent above-average returns have justified that premium over the long run. Committing for the long haul, the piece adds, reduces the risk of a short-term price decline.
The second argument is about timing. The column says Dollarama is the kind of stock that can see a Santa Claus rally, and it suggests buying before the end of tax-loss selling season. The stock is already near the top of its 52-week range, but the author thinks it could keep climbing through December.
Then comes the reason to wait, and it is about valuation. Dollarama trades at a forward price-to-earnings ratio of roughly 42 times, which the column describes as nearly the highest it has ever been. The three-year average forward P/E is 31.2 times, so the current multiple sits well above it. The author's advice is aimed at people who already own the stock and want to add: they can afford to hold off for a better price. The column also notes that plenty of high-quality stocks are currently fairly valued or modestly discounted.
The piece does not settle the matter. Its two poles are a long-term record that has rewarded patience and a multiple that leaves less room for error. For readers weighing entry timing, the near-term thing to watch is whether December's tax-loss selling and any seasonal rally move the shares, and whether the forward P/E drifts back toward its three-year average.
Citations marquantes
It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price.— Warren Buffett, as cited in the Motley Fool Canada column
Envie de l'histoire complète ?
Lire l'original sur The Motley Fool Canada ↗
Economy & Finance