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 22.80 is considered Undervalued compared with the five-year average of 27.55. The fair price of Domino's Pizza Inc (DPZ) is between 476.61 to 600.76 according to relative valuation methord. Compared to the current price of 427.07 USD , Domino's Pizza Inc is Undervalued By 10.39%.
Relative Value
Fair Zone
476.61-600.76
Current Price：427.07
10.39%
Undervalued
22.80
PE
1Y
3Y
5Y
Trailing
Forward
18.08
EV/EBITDA
Domino's Pizza Inc. (DPZ) has a current EV/EBITDA of 18.08. The 5-year average EV/EBITDA is 21.00. The thresholds are as follows: Strongly Undervalued below 16.26, Undervalued between 16.26 and 18.63, Fairly Valued between 23.37 and 18.63, Overvalued between 23.37 and 25.73, and Strongly Overvalued above 25.73. The current Forward EV/EBITDA of 18.08 falls within the Undervalued range.
19.82
EV/EBIT
Domino's Pizza Inc. (DPZ) has a current EV/EBIT of 19.82. The 5-year average EV/EBIT is 23.08. The thresholds are as follows: Strongly Undervalued below 17.98, Undervalued between 17.98 and 20.53, Fairly Valued between 25.63 and 20.53, Overvalued between 25.63 and 28.18, and Strongly Overvalued above 28.18. The current Forward EV/EBIT of 19.82 falls within the Undervalued range.
2.85
PS
Domino's Pizza Inc. (DPZ) has a current PS of 2.85. The 5-year average PS is 3.15. The thresholds are as follows: Strongly Undervalued below 2.20, Undervalued between 2.20 and 2.68, Fairly Valued between 3.63 and 2.68, Overvalued between 3.63 and 4.11, and Strongly Overvalued above 4.11. The current Forward PS of 2.85 falls within the Historic Trend Line -Fairly Valued range.
21.02
P/OCF
Domino's Pizza Inc. (DPZ) has a current P/OCF of 21.02. The 5-year average P/OCF is 23.41. The thresholds are as follows: Strongly Undervalued below 16.71, Undervalued between 16.71 and 20.06, Fairly Valued between 26.75 and 20.06, Overvalued between 26.75 and 30.10, and Strongly Overvalued above 30.10. The current Forward P/OCF of 21.02 falls within the Historic Trend Line -Fairly Valued range.
23.00
P/FCF
Domino's Pizza Inc. (DPZ) has a current P/FCF of 23.00. The 5-year average P/FCF is 27.90. The thresholds are as follows: Strongly Undervalued below 16.79, Undervalued between 16.79 and 22.34, Fairly Valued between 33.45 and 22.34, Overvalued between 33.45 and 39.01, and Strongly Overvalued above 39.01. The current Forward P/FCF of 23.00 falls within the Historic Trend Line -Fairly Valued range.
Domino's Pizza Inc (DPZ) has a current Price-to-Book (P/B) ratio of -3.64. Compared to its 3-year average P/B ratio of -3.58 , the current P/B ratio is approximately 1.77% higher. Relative to its 5-year average P/B ratio of -3.74, the current P/B ratio is about -2.63% 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 3.47%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 3.43% , the current FCF yield is about -100.00% lower.
-3.64
P/B
Median3y
-3.58
Median5y
-3.74
4.33
FCF Yield
Median3y
3.47
Median5y
3.43
Competitors Valuation Multiple
The average P/S ratio for DPZ's competitors is 1.30, providing a benchmark for relative valuation. Domino's Pizza Inc Corp (DPZ) exhibits a P/S ratio of , which is -100.00% 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
Performance Decomposition
1Y
3Y
5Y
Market capitalization of DPZ increased by 1.74% 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 6.20%to the performance.
Overall, the performance of DPZ in the past 1 year is driven by Revenue Growth. Which is more sustainable.
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