DPZ Valuation

Domino's Pizza Inc

Add to Watchlist

Advanced Chart

410.180

+8.72(2.172%)1D

DPZ Relative Valuation

DPZ's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, DPZ is overvalued; if below, it's undervalued.

Historical Valuation

Domino's Pizza Inc (DPZ) is now in the Undervalued zone, suggesting that its current forward PE ratio of 21.43 is considered Undervalued compared with the five-year average of 27.70. The fair price of Domino's Pizza Inc (DPZ) is between 469.29 to 591.83 according to relative valuation methord. Compared to the current price of 401.46 USD , Domino's Pizza Inc is Undervalued By 14.45%.

Relative Value

Fair Zone

469.29-591.83

Current Price：401.46

14.45%

Undervalued

21.90

Trailing

Forward

17.04

EV/EBITDA

Domino's Pizza Inc. (DPZ) has a current EV/EBITDA of 17.04. The 5-year average EV/EBITDA is 21.14. The thresholds are as follows: Strongly Undervalued below 16.52, Undervalued between 16.52 and 18.83, Fairly Valued between 23.45 and 18.83, Overvalued between 23.45 and 25.77, and Strongly Overvalued above 25.77. The current Forward EV/EBITDA of 17.04 falls within the Undervalued range.

18.67

EV/EBIT

Domino's Pizza Inc. (DPZ) has a current EV/EBIT of 18.67. The 5-year average EV/EBIT is 23.24. The thresholds are as follows: Strongly Undervalued below 18.28, Undervalued between 18.28 and 20.76, Fairly Valued between 25.71 and 20.76, Overvalued between 25.71 and 28.19, and Strongly Overvalued above 28.19. The current Forward EV/EBIT of 18.67 falls within the Undervalued range.

410.18

Domino's Pizza Inc. (DPZ) has a current PS of 410.18. The 5-year average PS is 6.10. The thresholds are as follows: Strongly Undervalued below -62.20, Undervalued between -62.20 and -28.05, Fairly Valued between 40.25 and -28.05, Overvalued between 40.25 and 74.41, and Strongly Overvalued above 74.41. The current Forward PS of 410.18 falls within the Strongly Overvalued range.

19.39

P/OCF

Domino's Pizza Inc. (DPZ) has a current P/OCF of 19.39. The 5-year average P/OCF is 23.51. The thresholds are as follows: Strongly Undervalued below 16.88, Undervalued between 16.88 and 20.20, Fairly Valued between 26.83 and 20.20, Overvalued between 26.83 and 30.15, and Strongly Overvalued above 30.15. The current Forward P/OCF of 19.39 falls within the Undervalued range.

21.23

P/FCF

Domino's Pizza Inc. (DPZ) has a current P/FCF of 21.23. The 5-year average P/FCF is 28.13. The thresholds are as follows: Strongly Undervalued below 17.14, Undervalued between 17.14 and 22.63, Fairly Valued between 33.62 and 22.63, Overvalued between 33.62 and 39.11, and Strongly Overvalued above 39.11. The current Forward P/FCF of 21.23 falls within the Undervalued range.

Domino's Pizza Inc (DPZ) has a current Price-to-Book (P/B) ratio of -3.42. Compared to its 3-year average P/B ratio of -3.57 , the current P/B ratio is approximately -4.04% higher. Relative to its 5-year average P/B ratio of -3.76, the current P/B ratio is about -8.92% higher. Domino's Pizza Inc (DPZ) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 3.40%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 3.38% , the current FCF yield is about -100.00% lower.

-3.50

P/B

Median3y

-3.57

Median5y

-3.76

4.69

FCF Yield

Median3y

3.40

Median5y

3.38

Competitors Valuation Multiple

The average P/S ratio for DPZ's competitors is 120.42, providing a benchmark for relative valuation. Domino's Pizza Inc Corp (DPZ) exhibits a P/S ratio of 410.18, which is 240.62% above the industry average. Given its robust revenue growth of 6.20%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

Yum China Holdings Inc

Super Hi International Holding Ltd

17.30

11.06B

Performance Decomposition

Market capitalization of DPZ decreased by 13.86% over the past 1 year. The primary factor behind the change was an increase in Revenue Growth from 1.08B to 1.15B.

The secondary factor is the P/E Change, contributed -9.40%to the performance.

Overall, the performance of DPZ in the past 1 year is driven by Revenue Growth. Which is more sustainable.

6.20%

1.08B → 1.15B

Revenue Growth

-10.66%

13.60 → 12.15

Margin Expansion

-9.40%

26.44 → 23.95

P/E Change

-13.86%