DPZ Valuation

Domino's Pizza Inc

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475.380

+5.33(1.134%)1D

Overview
Forecast
Valuation
Earnings

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 25.97 is considered Undervalued compared with the five-year average of 28.16. The fair price of Domino's Pizza Inc (DPZ) is between 548.12 to 667.60 according to relative valuation methord. Compared to the current price of 475.38 USD , Domino's Pizza Inc is Undervalued By 13.27%.

Relative Value

Fair Zone

548.12-667.60

Current Price：475.38

13.27%

Undervalued

25.97

Trailing

Forward

19.49

EV/EBITDA

Domino's Pizza Inc. (DPZ) has a current EV/EBITDA of 19.49. The 5-year average EV/EBITDA is 21.39. The thresholds are as follows: Strongly Undervalued below 16.74, Undervalued between 16.74 and 19.07, Fairly Valued between 23.72 and 19.07, Overvalued between 23.72 and 26.04, and Strongly Overvalued above 26.04. The current Forward EV/EBITDA of 19.49 falls within the Historic Trend Line -Fairly Valued range.

21.47

EV/EBIT

Domino's Pizza Inc. (DPZ) has a current EV/EBIT of 21.47. The 5-year average EV/EBIT is 23.50. The thresholds are as follows: Strongly Undervalued below 18.54, Undervalued between 18.54 and 21.02, Fairly Valued between 25.97 and 21.02, Overvalued between 25.97 and 28.45, and Strongly Overvalued above 28.45. The current Forward EV/EBIT of 21.47 falls within the Historic Trend Line -Fairly Valued range.

3.15

Domino's Pizza Inc. (DPZ) has a current PS of 3.15. The 5-year average PS is 3.21. The thresholds are as follows: Strongly Undervalued below 2.24, Undervalued between 2.24 and 2.73, Fairly Valued between 3.70 and 2.73, Overvalued between 3.70 and 4.19, and Strongly Overvalued above 4.19. The current Forward PS of 3.15 falls within the Historic Trend Line -Fairly Valued range.

24.66

P/OCF

Domino's Pizza Inc. (DPZ) has a current P/OCF of 24.66. The 5-year average P/OCF is 23.63. The thresholds are as follows: Strongly Undervalued below 17.03, Undervalued between 17.03 and 20.33, Fairly Valued between 26.94 and 20.33, Overvalued between 26.94 and 30.24, and Strongly Overvalued above 30.24. The current Forward P/OCF of 24.66 falls within the Historic Trend Line -Fairly Valued range.

24.92

P/FCF

Domino's Pizza Inc. (DPZ) has a current P/FCF of 24.92. The 5-year average P/FCF is 28.41. The thresholds are as follows: Strongly Undervalued below 17.54, Undervalued between 17.54 and 22.97, Fairly Valued between 33.85 and 22.97, Overvalued between 33.85 and 39.29, and Strongly Overvalued above 39.29. The current Forward P/FCF of 24.92 falls within the Historic Trend Line -Fairly Valued range.

Domino's Pizza Inc (DPZ) has a current Price-to-Book (P/B) ratio of -4.06. Compared to its 3-year average P/B ratio of -3.50 , the current P/B ratio is approximately 16.04% higher. Relative to its 5-year average P/B ratio of -3.82, the current P/B ratio is about 6.13% higher. Domino's Pizza Inc (DPZ) has a Forward Free Cash Flow (FCF) yield of approximately 3.84%. Compared to its 3-year average FCF yield of 3.34%, the current FCF yield is approximately 14.91% lower. Relative to its 5-year average FCF yield of 3.32% , the current FCF yield is about 15.75% lower.

-4.06

P/B

Median3y

-3.50

Median5y

-3.82

3.84

FCF Yield

Median3y

3.34

Median5y

3.32

Competitors Valuation Multiple

The average P/S ratio for DPZ's competitors is 3.01, providing a benchmark for relative valuation. Domino's Pizza Inc Corp (DPZ) exhibits a P/S ratio of 3.15, which is 4.75% above the industry average. Given its robust revenue growth of 4.32%, 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

Performance Decomposition

Market capitalization of DPZ increased by 10.89% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 23.37 to 27.59.

The secondary factor is the Revenue Growth, contributed 4.32%to the performance.

Overall, the performance of DPZ in the past 1 year is driven by P/E Change. Which is more unsustainable.

4.32%

1.10B → 1.15B

Revenue Growth

-11.45%

12.93 → 11.45

Margin Expansion

18.02%

23.37 → 27.59

P/E Change

10.89%