Domino's Pizza Group plc

LSE:DOM Stock Report

Market Cap: UK£1.3b

Domino's Pizza Group Valuation

Is DOM 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 DOM when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: DOM (£3.37) is trading below our estimate of fair value (£4.85)

Significantly Below Fair Value: DOM is trading below fair value by more than 20%.

Key Valuation Metric

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

Key metric: As DOM is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for DOM. This is calculated by dividing DOM's market cap by their current earnings.
What is DOM's PE Ratio?
PE Ratio17.1x
EarningsUK£77.10m
Market CapUK£1.32b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for DOM vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average27.2x
ROO Deliveroo
43.4x36.8%UK£2.2b
MAB Mitchells & Butlers
30.9x33.3%UK£1.4b
JDW J D Wetherspoon
15.1x12.1%UK£737.2m
GRG Greggs
19.5x6.6%UK£2.7b
DOM Domino's Pizza Group
17.1x9.0%UK£1.3b

Price-To-Earnings vs Peers: DOM is good value based on its Price-To-Earnings Ratio (17.1x) compared to the peer average (27.2x).

Price to Earnings Ratio vs Industry

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

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
TAST Tasty
0.4x-75.9%US$2.74m
No more companies available in this PE range
DOM 17.1xIndustry Avg. 20.7xNo. of Companies6PE01224364860+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: DOM is good value based on its Price-To-Earnings Ratio (17.1x) compared to the UK Hospitality industry average (20.7x).

Price to Earnings Ratio vs Fair Ratio

What is DOM'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.

DOM PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio17.1x
Fair PE Ratio21x

Price-To-Earnings vs Fair Ratio: DOM is good value based on its Price-To-Earnings Ratio (17.1x) compared to the estimated Fair Price-To-Earnings Ratio (21x).

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 DOM forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£3.37
UK£3.97
+17.6%
15.3%UK£5.00UK£2.83n/a10
Nov ’25UK£3.14
UK£3.97
+26.2%
15.3%UK£5.00UK£2.83n/a10
Oct ’25UK£2.96
UK£3.97
+34.2%
15.3%UK£5.00UK£2.83n/a10
Sep ’25UK£3.06
UK£3.98
+30.3%
16.0%UK£5.00UK£2.83n/a9
Aug ’25UK£3.25
UK£4.18
+28.4%
14.3%UK£5.00UK£3.00n/a9
Jul ’25UK£3.05
UK£4.20
+37.7%
15.0%UK£5.00UK£3.00n/a8
Jun ’25UK£3.33
UK£4.23
+27.1%
14.2%UK£5.00UK£3.00n/a9
May ’25UK£3.23
UK£4.39
+36.0%
10.0%UK£5.00UK£3.55n/a8
Apr ’25UK£3.45
UK£4.43
+28.4%
8.4%UK£5.00UK£3.85n/a8
Mar ’25UK£3.46
UK£4.16
+20.4%
8.0%UK£4.80UK£3.60n/a8
Feb ’25UK£3.47
UK£4.21
+21.3%
8.5%UK£4.80UK£3.60n/a8
Jan ’25UK£3.77
UK£4.21
+11.8%
8.5%UK£4.80UK£3.60n/a8
Dec ’24UK£3.73
UK£4.11
+10.3%
6.9%UK£4.60UK£3.60n/a8
Nov ’24UK£3.48
UK£4.09
+17.3%
7.2%UK£4.60UK£3.60UK£3.147
Oct ’24UK£3.76
UK£3.96
+5.2%
11.1%UK£4.60UK£2.95UK£2.969
Sep ’24UK£3.93
UK£3.86
-1.8%
14.4%UK£4.60UK£2.90UK£3.069
Aug ’24UK£3.93
UK£3.48
-11.5%
17.1%UK£4.25UK£2.40UK£3.259
Jul ’24UK£2.76
UK£3.18
+15.3%
16.7%UK£3.75UK£2.30UK£3.059
Jun ’24UK£2.81
UK£3.18
+13.3%
16.7%UK£3.75UK£2.30UK£3.339
May ’24UK£2.94
UK£3.17
+7.6%
16.4%UK£3.75UK£2.30UK£3.239
Apr ’24UK£2.87
UK£3.17
+10.5%
16.4%UK£3.75UK£2.30UK£3.459
Mar ’24UK£2.89
UK£3.28
+13.6%
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£3.479
Jan ’24UK£2.93
UK£3.32
+13.2%
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£3.738
Nov ’23UK£2.32
UK£3.21
+38.2%
23.8%UK£4.25UK£2.30UK£3.488

Analyst Forecast: Target price is less than 20% higher than the current share price.

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