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 22.71 is considered Undervalued compared with the five-year average of 27.42. The fair price of Domino's Pizza Inc (DPZ) is between 451.93 to 570.93 according to relative valuation methord. Compared to the current price of 405.50 USD , Domino's Pizza Inc is Undervalued By 10.27%.
Relative Value
Fair Zone
451.93-570.93
Current Price：405.50
10.27%
Undervalued
22.71
PE
1Y
3Y
5Y
17.87
EV/EBITDA
Domino's Pizza Inc. (DPZ) has a current EV/EBITDA of 17.87. The 5-year average EV/EBITDA is 20.91. The thresholds are as follows: Strongly Undervalued below 16.14, Undervalued between 16.14 and 18.53, Fairly Valued between 23.30 and 18.53, Overvalued between 23.30 and 25.69, and Strongly Overvalued above 25.69. The current Forward EV/EBITDA of 17.87 falls within the Undervalued range.
19.58
EV/EBIT
Domino's Pizza Inc. (DPZ) has a current EV/EBIT of 19.58. The 5-year average EV/EBIT is 22.99. The thresholds are as follows: Strongly Undervalued below 17.84, Undervalued between 17.84 and 20.41, Fairly Valued between 25.56 and 20.41, Overvalued between 25.56 and 28.14, and Strongly Overvalued above 28.14. The current Forward EV/EBIT of 19.58 falls within the Undervalued range.
2.81
PS
Domino's Pizza Inc. (DPZ) has a current PS of 2.81. The 5-year average PS is 3.14. The thresholds are as follows: Strongly Undervalued below 2.19, Undervalued between 2.19 and 2.67, Fairly Valued between 3.62 and 2.67, Overvalued between 3.62 and 4.10, and Strongly Overvalued above 4.10. The current Forward PS of 2.81 falls within the Historic Trend Line -Fairly Valued range.
20.71
P/OCF
Domino's Pizza Inc. (DPZ) has a current P/OCF of 20.71. The 5-year average P/OCF is 23.36. The thresholds are as follows: Strongly Undervalued below 16.63, Undervalued between 16.63 and 20.00, Fairly Valued between 26.73 and 20.00, Overvalued between 26.73 and 30.10, and Strongly Overvalued above 30.10. The current Forward P/OCF of 20.71 falls within the Historic Trend Line -Fairly Valued range.
22.66
P/FCF
Domino's Pizza Inc. (DPZ) has a current P/FCF of 22.66. The 5-year average P/FCF is 27.79. The thresholds are as follows: Strongly Undervalued below 16.60, Undervalued between 16.60 and 22.19, Fairly Valued between 33.38 and 22.19, Overvalued between 33.38 and 38.97, and Strongly Overvalued above 38.97. The current Forward P/FCF of 22.66 falls within the Historic Trend Line -Fairly Valued range.
Domino's Pizza Inc (DPZ) has a current Price-to-Book (P/B) ratio of -3.63. Compared to its 3-year average P/B ratio of -3.60 , the current P/B ratio is approximately 0.74% higher. Relative to its 5-year average P/B ratio of -3.72, the current P/B ratio is about -2.52% higher. Domino's Pizza Inc (DPZ) has a Forward Free Cash Flow (FCF) yield of approximately 4.40%. Compared to its 3-year average FCF yield of 3.51%, the current FCF yield is approximately 25.28% lower. Relative to its 5-year average FCF yield of 3.45% , the current FCF yield is about 27.45% lower.
-3.63
P/B
Median3y
-3.60
Median5y
-3.72
4.40
FCF Yield
Median3y
3.51
Median5y
3.45
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 2.81, which is 43.3% above the industry average. Given its robust revenue growth of 6.20%, this premium appears unsustainable.
Performance Decomposition
1Y
3Y
5Y
Market capitalization of DPZ decreased by 9.71% 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 -5.25%to the performance.
Overall, the performance of DPZ in the past 1 year is driven by Revenue Growth. Which is more sustainable.
People Also Watch
RGA
Reinsurance Group of America Inc
202.44USD
0.70%
EVRG
Evergy Inc
72.94USD
0.59%
ACM
AECOM
98.9USD
0.38%
BAP
Credicorp Ltd
303.84USD
3.45%
DOC
Healthpeak Properties Inc
17.04USD
0.59%
JHX
James Hardie Industries PLC
21.55USD
4.36%
TXT
Textron Inc
91.71USD
3.53%
CASY
Caseys General Stores Inc
586.38USD
2.23%
NBIX
Neurocrine Biosciences Inc
135.57USD
-3.59%
Frequently Asked Questions
Is Domino's Pizza Inc (DPZ) currently overvalued or undervalued?
Domino's Pizza Inc (DPZ) is now in the Undervalued zone, suggesting that its current forward PE ratio of 22.71 is considered Undervalued compared with the five-year average of 27.42. The fair price of Domino's Pizza Inc (DPZ) is between 451.93 to 570.93 according to relative valuation methord. Compared to the current price of 405.50 USD , Domino's Pizza Inc is Undervalued By 10.27% .
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 451.93 to 570.93 according to relative valuation methord.
How does DPZ's valuation metrics compare to the industry average?
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 2.81, which is 43.30% above the industry average. Given its robust revenue growth of 6.20%, this premium appears unsustainable.
What is the current P/B ratio for Domino's Pizza Inc (DPZ) as of Jan 09 2026?
As of Jan 09 2026, Domino's Pizza Inc (DPZ) has a P/B ratio of -3.63. This indicates that the market values DPZ at -3.63 times its book value.
What is the current FCF Yield for Domino's Pizza Inc (DPZ) as of Jan 09 2026?
As of Jan 09 2026, Domino's Pizza Inc (DPZ) has a FCF Yield of 4.40%. This means that for every dollar of Domino's Pizza Inc’s market capitalization, the company generates 4.40 cents in free cash flow.
What is the current Forward P/E ratio for Domino's Pizza Inc (DPZ) as of Jan 09 2026?
As of Jan 09 2026, Domino's Pizza Inc (DPZ) has a Forward P/E ratio of 22.71. This means the market is willing to pay $22.71 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 Jan 09 2026?
As of Jan 09 2026, Domino's Pizza Inc (DPZ) has a Forward P/S ratio of 2.81. This means the market is valuing DPZ at $2.81 for every dollar of expected revenue over the next 12 months.