We’ve recently updated our valuation analysis.

Domino's Pizza Valuation

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

Valuation Score

1/6

Valuation Score 1/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

DPZ 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/Revenue4.1x
Enterprise Value/EBITDA23.3x
PEG Ratio3x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for DPZ vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average30.8x
DRI Darden Restaurants
19.2x7.0%US$17.6b
ARMK Aramark
54.5x30.2%US$10.6b
YUMC Yum China Holdings
28.1x24.6%US$24.3b
QSR Restaurant Brands International
21.4x4.1%US$30.0b
DPZ Domino's Pizza
29.5x9.9%US$13.3b

Price-To-Earnings vs Peers: DPZ is good value based on its Price-To-Earnings Ratio (29.5x) compared to the peer average (30.8x).


Price to Earnings Ratio vs Industry

How does DPZ's PE Ratio compare vs other companies in the US Hospitality Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a25.3%
n/an/an/a

Price-To-Earnings vs Industry: DPZ is expensive based on its Price-To-Earnings Ratio (29.5x) compared to the US Hospitality industry average (18.2x)


Price to Earnings Ratio vs Fair Ratio

What is DPZ'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.

DPZ PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio29.5x
Fair PE Ratio24.7x

Price-To-Earnings vs Fair Ratio: DPZ is expensive based on its Price-To-Earnings Ratio (29.5x) compared to the estimated Fair Price-To-Earnings Ratio (24.7x).


Share Price vs Fair Value

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

Below Fair Value: DPZ ($374.94) is trading above our estimate of fair value ($227.82)

Significantly Below Fair Value: DPZ is trading above our estimate of fair value.


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 DPZ forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$374.94
US$381.66
+1.8%
11.2%US$460.00US$315.00n/a28
Dec ’23US$385.58
US$378.76
-1.8%
10.8%US$460.00US$315.00n/a27
Nov ’23US$333.44
US$373.18
+11.9%
10.0%US$450.00US$315.00n/a26
Oct ’23US$310.20
US$412.04
+32.8%
9.7%US$495.00US$334.00n/a26
Sep ’23US$371.62
US$425.29
+14.4%
7.6%US$495.00US$350.00n/a24
Aug ’23US$390.12
US$424.80
+8.9%
7.6%US$495.00US$350.00n/a24
Jul ’23US$403.61
US$403.69
+0.02%
10.4%US$512.00US$326.00n/a25
Jun ’23US$360.85
US$399.69
+10.8%
10.8%US$512.00US$335.00n/a25
May ’23US$338.00
US$407.74
+20.6%
11.3%US$512.00US$325.00n/a26
Apr ’23US$397.18
US$467.16
+17.6%
9.2%US$565.00US$410.00n/a27
Mar ’23US$432.21
US$503.04
+16.4%
10.9%US$642.00US$410.00n/a27
Feb ’23US$458.30
US$522.30
+14.0%
10.1%US$642.00US$416.00n/a27
Jan ’23US$564.33
US$522.35
-7.4%
8.4%US$608.00US$416.00n/a26
Dec ’22US$511.65
US$519.54
+1.5%
7.9%US$590.00US$416.00US$385.5826
Nov ’22US$487.38
US$519.22
+6.5%
7.7%US$590.00US$416.00US$333.4427
Oct ’22US$475.07
US$536.36
+12.9%
9.0%US$625.00US$410.00US$310.2025
Sep ’22US$515.40
US$534.23
+3.7%
9.9%US$625.00US$410.00US$371.6226
Aug ’22US$525.49
US$532.23
+1.3%
9.9%US$625.00US$410.00US$390.1226
Jul ’22US$466.02
US$438.72
-5.9%
8.8%US$525.00US$370.00US$403.6125
Jun ’22US$423.00
US$432.56
+2.3%
8.0%US$485.00US$350.00US$360.8525
May ’22US$422.34
US$426.81
+1.1%
8.2%US$485.00US$350.00US$338.0027
Apr ’22US$373.38
US$405.96
+8.7%
7.8%US$475.00US$360.00US$397.1828
Mar ’22US$345.06
US$409.80
+18.8%
8.1%US$475.00US$367.00US$432.2125
Feb ’22US$371.42
US$427.44
+15.1%
7.6%US$500.00US$360.00US$458.3027
Jan ’22US$383.46
US$431.46
+12.5%
7.2%US$500.00US$370.00US$564.3326
Dec ’21US$391.75
US$432.58
+10.4%
6.6%US$500.00US$370.00US$511.6526

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


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