DPZ PE Ratio & Valuation,Is DPZ Overvalued

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 23.04 is considered Undervalued compared with the five-year average of 27.51. The fair price of Domino's Pizza Inc (DPZ) is between 475.77 to 600.21 according to relative valuation methord. Compared to the current price of 431.73 USD , Domino's Pizza Inc is Undervalued By 9.26%.

Relative Value

Fair Zone

475.77-600.21

Current Price：431.73

9.26%

Undervalued

23.04

18.09

EV/EBITDA

Domino's Pizza Inc. (DPZ) has a current EV/EBITDA of 18.09. The 5-year average EV/EBITDA is 20.97. The thresholds are as follows: Strongly Undervalued below 16.22, Undervalued between 16.22 and 18.60, Fairly Valued between 23.35 and 18.60, Overvalued between 23.35 and 25.72, and Strongly Overvalued above 25.72. The current Forward EV/EBITDA of 18.09 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 23.05. The thresholds are as follows: Strongly Undervalued below 17.93, Undervalued between 17.93 and 20.49, Fairly Valued between 25.61 and 20.49, Overvalued between 25.61 and 28.16, and Strongly Overvalued above 28.16. The current Forward EV/EBIT of 19.82 falls within the Undervalued range.

2.85

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 2.67, Fairly Valued between 3.63 and 2.67, 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 23.39. The thresholds are as follows: Strongly Undervalued below 16.69, Undervalued between 16.69 and 20.04, Fairly Valued between 26.74 and 20.04, Overvalued between 26.74 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 27.86. The thresholds are as follows: Strongly Undervalued below 16.73, Undervalued between 16.73 and 22.29, Fairly Valued between 33.42 and 22.29, Overvalued between 33.42 and 38.99, and Strongly Overvalued above 38.99. 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 -3.68. Compared to its 3-year average P/B ratio of -3.59 , the current P/B ratio is approximately 2.65% higher. Relative to its 5-year average P/B ratio of -3.73, the current P/B ratio is about -1.43% higher. Domino's Pizza Inc (DPZ) has a Forward Free Cash Flow (FCF) yield of approximately 4.33%. Compared to its 3-year average FCF yield of 3.49%, the current FCF yield is approximately 24.18% lower. Relative to its 5-year average FCF yield of 3.43% , the current FCF yield is about 26.10% lower.

-3.68

P/B

Median3y

-3.59

Median5y

-3.73

4.33

FCF Yield

Median3y

3.49

Median5y

3.43

Competitors Valuation Multiple

The average P/S ratio for DPZ's competitors is 1.96, providing a benchmark for relative valuation. Domino's Pizza Inc Corp (DPZ) exhibits a P/S ratio of 2.85, which is 45.33% above the industry average. Given its robust revenue growth of 6.20%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

Revenue Growth

Market Cap

Performance Decomposition

Market capitalization of DPZ increased by 2.85% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 23.49 to 25.20.

The secondary factor is the Revenue Growth, contributed 6.20%to the performance.

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

6.20%

1.08B → 1.15B

Revenue Growth

-10.66%

13.60 → 12.15

Margin Expansion

7.31%

23.49 → 25.20

P/E Change

2.85%

419.76 → 431.73

Mkt Cap Growth

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Frequently Asked Questions

Is Domino's Pizza Inc (DPZ) currently overvalued or undervalued?

What is Domino's Pizza Inc (DPZ) fair value?

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. The fair price of Domino's Pizza Inc (DPZ) is between 475.77 to 600.21 according to relative valuation methord.

How does DPZ's valuation metrics compare to the industry average?

What is the current P/B ratio for Domino's Pizza Inc (DPZ) as of Dec 15 2025?

As of Dec 15 2025, Domino's Pizza Inc (DPZ) has a P/B ratio of -3.68. This indicates that the market values DPZ at -3.68 times its book value.

What is the current FCF Yield for Domino's Pizza Inc (DPZ) as of Dec 15 2025?

As of Dec 15 2025, Domino's Pizza Inc (DPZ) has a FCF Yield of 4.33%. This means that for every dollar of Domino's Pizza Inc’s market capitalization, the company generates 4.33 cents in free cash flow.

What is the current Forward P/E ratio for Domino's Pizza Inc (DPZ) as of Dec 15 2025?

As of Dec 15 2025, Domino's Pizza Inc (DPZ) has a Forward P/E ratio of 23.04. This means the market is willing to pay $23.04 for every dollar of Domino's Pizza Inc’s expected earnings over the next 12 months.

What is the current Forward P/S ratio for Domino's Pizza Inc (DPZ) as of Dec 15 2025?

As of Dec 15 2025, Domino's Pizza Inc (DPZ) has a Forward P/S ratio of 2.85. This means the market is valuing DPZ at $2.85 for every dollar of expected revenue over the next 12 months.

DPZ Valuation