Pizza Pizza Royalty Corp., through its subsidiary, Pizza Pizza Royalty Limited Partnership, owns and franchises quick service restaurants under the Pizza Pizza and Pizza 73 brands in Canada. More info.
The calculations below outline how an intrinsic value for
Pizza Pizza Royalty
is arrived at by discounting future cash flows to their present value. We use
analyst's estimates of cash flows going forward 5 years.
See our documentation to learn about this calculation.
|Levered FCF (CAD, Millions)||CA$22.03||CA$22.70||CA$23.38||CA$24.08||CA$24.81|
|Source||Extrapolated @ (3.01%)||Extrapolated @ (3.01%)||Extrapolated @ (3.01%)||Extrapolated @ (3.01%)||Extrapolated @ (3.01%)|
Discounted (@ 11.89%)
Present value of next 5 years cash flows:
Terminal Value = FCF2022 × (1 + g) ÷ (Discount Rate – g)
Terminal Value = CA$25 × (1 + 2.13%) ÷ (11.89% – 2.13%)
Terminal value based on the Perpetuity Method where growth (g) =
Present value of terminal value:
Equity Value (Total value) = Present value of next 5 years cash flows +
CA$232 = CA$84 + CA$148
Value = Total value / Shares Outstanding (CA$232 / 31)Discount to Share Price
Value per share:
Current discount (share price of CA$14.1): -89.57%
The discount rate, or required rate of return, is estimated by calculating the Cost of Equity.
Discount rate = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
Discount rate = 11.89% = 2.13% + (1.24 * 7.87%)
The Levered Beta is the Unlevered Beta adjusted for financial leverage. It is limited to 0.8 to 2.0 (practical range for a stable firm). Note the market value of equity is used not the book value (CA$440,110,279).
Levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
1.24 = 1.149 (1 + (1- 26.5%) (10.68%))
Levered Beta used in calculation = 1.24
Average tenure and age of the Pizza Pizza Royalty board of directors in years:
After reading Pizza Pizza Royalty Corp's (TSX:PZA) latest earnings update (31 December 2017), I found it beneficial to look back at how the company has performed in the past and compare this against the most recent numbers. … Check out our latest analysis for Pizza Pizza Royalty Did PZA's recent earnings growth beat the long-term trend and the industry? … For Pizza Pizza Royalty, its latest trailing-twelve-month earnings is CA$27.05M, which, relative to the prior year's figure, Since these figures are somewhat nearsighted, I have computed an annualized five-year figure for PZA's earnings, which stands at CA$19.67M This means on average, Pizza Pizza Royalty has been able to grow its earnings over the past couple of years.Simply Wall St - – Full article
Pizza Pizza Royalty Corp’s (TSX:PZA) most recent return on equity was a substandard 9.67% relative to its industry performance of 12.80% over the past year. … View our latest analysis for Pizza Pizza Royalty What you must know about ROE Firstly, Return on Equity, or ROE, is simply the percentage of last years’ earning against the book value of shareholders’ equity. … For now, let’s just look at the cost of equity number for Pizza Pizza Royalty, which is 11.87%.Simply Wall St - – Full article
Pizza Pizza Royalty Corp (TSX:PZA) has returned to shareholders over the past 10 years, an average dividend yield of 8.00% annually. … View our latest analysis for Pizza Pizza Royalty Here's how I find good dividend stocks Whenever I am looking at a potential dividend stock investment, I always check these five metrics: Is it the top 25% annual dividend yield payer? … TSX:PZA Historical Dividend Yield Feb 14th 18 How does Pizza Pizza Royalty fare?Simply Wall St - – Full article
In this analysis, my focus will be on developing a perspective on Pizza Pizza Royalty Corp’s (TSX:PZA) latest ownership structure, a less discussed, but important factor. … View our latest analysis for Pizza Pizza Royalty TSX:PZA Ownership_summary Jan 12th 18 Institutional Ownership Institutions account for 25.77% of PZA's outstanding shares, a significant enough holding to move stock prices if they start buying and selling in large quantities, especially when there are relatively small amounts of shares available on the market to trade. … With this size of ownership in PZA, this ownership class can affect the company's business strategy.Simply Wall St - – Full article
How does PZA’s operating cash flow stack up against its debt? … PZA has demonstrated its ability to generate sufficient levels of cash flow, while its debt hovers at a safe level. … PZA’s relatively safe debt levels is even more impressive due to its ability to generate high cash flow, which illustrates operating efficiency.Simply Wall St - – Full article
It compares a stock’s price per share to the stock’s earnings per share. … Formula Price-Earnings Ratio = Price per share ÷ Earnings per share P/E Calculation for PZA Price per share = CA$16.26 Earnings per share = CA$0.865 ∴ Price-Earnings Ratio = CA$16.26 ÷ CA$0.865 = 18.8x The P/E ratio itself doesn’t tell you a lot; however, it becomes very insightful when you compare it with other similar companies. … At 18.8x, PZA’s P/E is higher than its industry peers (16.3x).Simply Wall St - – Full article
Let’s take a look at Pizza Pizza Royalty’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change. … Furthermore, Pizza Pizza Royalty’s share price also seems relatively stable compared to the rest of the market, as indicated by its low beta. … Pizza Pizza Royalty’s optimistic future growth appears to have been factored into the current share price, with shares trading above its fair value.Simply Wall St - – Full article
View our latest analysis for Pizza Pizza Royalty What you must know about ROE Firstly, Return on Equity, or ROE, is simply the percentage of last years’ earning against the book value of shareholders’ equity. … Return on Equity = Net Profit ÷ Shareholders Equity ROE is measured against cost of equity in order to determine the efficiency of PZA’s equity capital deployed. … This is called the Dupont Formula: Dupont Formula ROE = profit margin × asset turnover × financial leverage ROE = (annual net profit ÷ sales) × (sales ÷ assets) × (assets ÷ shareholders’ equity) ROE = annual net profit ÷ shareholders’ equity TSX:PZA Last Perf Dec 9th 17 Essentially, profit margin shows how much money the company makes after paying for all its expenses.Simply Wall St - – Full article
View our latest analysis for Pizza Pizza Royalty How Did PZA's Recent Performance Stack Up Against Its Past? … This shows that, on average, Pizza Pizza Royalty has been able to increase its earnings over the past few years. … This means that any uplift the industry is benefiting from, Pizza Pizza Royalty has not been able to reap as much as its average peer.What does this mean?Simply Wall St - – Full article
Important news for shareholders and potential investors in Pizza Pizza Royalty Corp (TSX:PZA): The dividend payment of CA$0.07 per share will be distributed into shareholder on 15 November 2017, and the stock will begin trading ex-dividend at an earlier date, 30 October 2017. … Check out our latest analysis for Pizza Pizza Royalty How I analyze a dividend stock Whenever I am looking at a potential dividend stock investment, I always check these five metrics: Is it the top 25% annual dividend yield payer? … Whilst there are few things you may like about Pizza Pizza Royalty from a dividend stock perspective, the truth is that overall it probably is not the best choice for a dividend investor.Simply Wall St - – Full article
Pizza Pizza Royalty Corp., through its subsidiary, Pizza Pizza Royalty Limited Partnership, owns and franchises quick service restaurants under the Pizza Pizza and Pizza 73 brands in Canada. As of January 1, 2018, the company had 758 restaurants in the royalty pool. Pizza Pizza Royalty Corp. was founded in 1967 and is headquartered in Toronto, Canada.
|Name:||Pizza Pizza Royalty Corp.|
Pizza Pizza Royalty Corp.
500 Kipling Avenue,
Ontario, M8Z 5E5,
|Exchange Symbol||Ticker Symbol||Security||Exchange||Country||Currency||Listed on|
|TSX||PZA||Common Shares||The Toronto Stock Exchange||CA||CAD||06. Jul 2005|
|OTCPK||PZRI.F||Common Shares||Pink Sheets LLC||US||USD||06. Jul 2005|
|Company Analysis updated:||2018/03/21 19:44|
|Last estimates confirmation:||2018/03/01|
|Last earnings update:||2017/12/31|
|Last annual earnings update:||2017/12/31|
All dates in UTC. All financial data provided by Standard & Poor’s Capital IQ.
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.