Domino's Pizza Group plc

BATS-CHIXE:DOML Stock Report

Market Cap: UK£1.4b

Domino's Pizza Group Valuation

Is DOML undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of DOML when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: DOML (£3.4) is trading below our estimate of fair value (£3.64)

Significantly Below Fair Value: DOML is trading below fair value, but not by a significant amount.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for DOML?

Other financial metrics that can be useful for relative valuation.

DOML key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue2.7x
Enterprise Value/EBITDA15.4x
PEG Ratio-2.3x

Price to Earnings Ratio vs Peers

How does DOML's PE Ratio compare to its peers?

The above table shows the PE ratio for DOML vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average25.7x
JDW J D Wetherspoon
23.5x19.0%UK£970.4m
GRG Greggs
20.2x5.9%UK£2.9b
YNGA Young's Brewery
21.5x18.4%UK£509.3m
FSTA Fuller Smith & Turner
37.8x23.1%UK£396.4m
DOML Domino's Pizza Group
11.8x-5.2%UK£1.4b

Price-To-Earnings vs Peers: DOML is good value based on its Price-To-Earnings Ratio (11.8x) compared to the peer average (25.7x).


Price to Earnings Ratio vs Industry

How does DOML's PE Ratio compare vs other companies in the GB Hospitality Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a34.4%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a34.4%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: DOML is good value based on its Price-To-Earnings Ratio (11.8x) compared to the UK Hospitality industry average (21.7x).


Price to Earnings Ratio vs Fair Ratio

What is DOML's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

DOML PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio11.8x
Fair PE Ratio17x

Price-To-Earnings vs Fair Ratio: DOML is good value based on its Price-To-Earnings Ratio (11.8x) compared to the estimated Fair Price-To-Earnings Ratio (17x).


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst DOML forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£3.40
UK£4.39
+29.0%
10.0%UK£5.00UK£3.55n/a8
May ’25UK£3.24
UK£4.39
+35.4%
10.0%UK£5.00UK£3.55n/a8
Apr ’25UK£3.50
UK£4.43
+26.4%
8.4%UK£5.00UK£3.85n/a8
Mar ’25UK£3.46
UK£4.16
+20.3%
8.0%UK£4.80UK£3.60n/a8
Feb ’25UK£3.45
UK£4.21
+22.0%
8.5%UK£4.80UK£3.60n/a8
Jan ’25UK£3.77
UK£4.21
+11.7%
8.5%UK£4.80UK£3.60n/a8
Dec ’24UK£3.72
UK£4.11
+10.4%
6.9%UK£4.60UK£3.60n/a8
Nov ’24UK£3.49
UK£4.09
+17.1%
7.2%UK£4.60UK£3.60n/a7
Oct ’24UK£3.77
UK£3.96
+5.0%
11.1%UK£4.60UK£2.95n/a9
Sep ’24UK£3.93
UK£3.86
-1.9%
14.4%UK£4.60UK£2.90n/a9
Aug ’24UK£3.94
UK£3.48
-11.6%
17.1%UK£4.25UK£2.40n/a9
Jul ’24UK£2.78
UK£3.18
+14.6%
16.7%UK£3.75UK£2.30n/a9
Jun ’24UK£2.81
UK£3.18
+13.2%
16.7%UK£3.75UK£2.30n/a9
May ’24UK£2.94
UK£3.17
+7.8%
16.4%UK£3.75UK£2.30UK£3.249
Apr ’24UK£2.87
UK£3.17
+10.2%
16.4%UK£3.75UK£2.30UK£3.509
Mar ’24UK£2.88
UK£3.28
+13.9%
18.7%UK£4.10UK£2.30UK£3.469
Feb ’24UK£3.13
UK£3.32
+6.3%
19.7%UK£4.10UK£2.30UK£3.459
Jan ’24UK£2.95
UK£3.32
+12.5%
19.7%UK£4.10UK£2.30UK£3.779
Dec ’23UK£2.90
UK£3.20
+10.3%
22.9%UK£4.10UK£2.30UK£3.728
Nov ’23UK£2.31
UK£3.21
+38.9%
23.8%UK£4.25UK£2.30UK£3.498
Oct ’23UK£2.23
UK£3.30
+47.9%
23.2%UK£4.25UK£2.30UK£3.779
Sep ’23UK£2.28
UK£3.47
+52.6%
22.9%UK£4.66UK£2.30UK£3.938
Aug ’23UK£2.91
UK£3.58
+22.8%
27.4%UK£5.50UK£2.30UK£3.948
Jul ’23UK£2.77
UK£3.91
+41.1%
24.9%UK£5.50UK£2.30UK£2.787
Jun ’23UK£3.30
UK£4.04
+22.5%
19.7%UK£5.50UK£3.10UK£2.817
May ’23UK£3.49
UK£4.22
+21.2%
16.0%UK£5.50UK£3.30UK£2.947

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.


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