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

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

Below Fair Value: DPZ ($473.55) is trading above our estimate of fair value ($385.62)

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


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/Revenue4.8x
Enterprise Value/EBITDA24.8x
PEG Ratio4.1x

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.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average49.8x
YUMC Yum China Holdings
17.5x9.8%US$14.5b
DRI Darden Restaurants
17.6x8.0%US$18.2b
QSR Restaurant Brands International
18.8x12.5%US$31.9b
WING Wingstop
145.4x16.2%US$10.2b
DPZ Domino's Pizza
31.8x7.8%US$16.5b

Price-To-Earnings vs Peers: DPZ is good value based on its Price-To-Earnings Ratio (31.8x) compared to the peer average (49.8x).


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/a19.2%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a19.2%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: DPZ is expensive based on its Price-To-Earnings Ratio (31.8x) compared to the US Hospitality industry average (19.6x).


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 Ratio31.8x
Fair PE Ratio24.9x

Price-To-Earnings vs Fair Ratio: DPZ is expensive based on its Price-To-Earnings Ratio (31.8x) compared to the estimated Fair Price-To-Earnings Ratio (24.9x).


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$473.55
US$496.27
+4.8%
9.4%US$570.00US$400.00n/a30
Apr ’25US$493.92
US$486.59
-1.5%
8.8%US$550.00US$400.00n/a29
Mar ’25US$447.23
US$481.14
+7.6%
9.6%US$550.00US$400.00n/a29
Feb ’25US$433.53
US$436.03
+0.6%
8.6%US$500.00US$346.00n/a30
Jan ’25US$412.23
US$425.57
+3.2%
9.5%US$483.00US$330.00n/a30
Dec ’24US$397.18
US$410.49
+3.4%
9.6%US$483.00US$330.00n/a28
Nov ’24US$344.13
US$409.06
+18.9%
9.7%US$483.00US$330.00n/a28
Oct ’24US$378.79
US$415.25
+9.6%
9.9%US$483.00US$320.00n/a27
Sep ’24US$391.14
US$411.42
+5.2%
10.3%US$483.00US$320.00n/a27
Aug ’24US$399.65
US$408.05
+2.1%
10.6%US$483.00US$320.00n/a27
Jul ’24US$336.99
US$347.90
+3.2%
10.4%US$415.00US$270.00n/a26
Jun ’24US$296.67
US$346.66
+16.8%
10.7%US$415.00US$270.00n/a25
May ’24US$311.25
US$347.24
+11.6%
10.6%US$415.00US$270.00n/a25
Apr ’24US$329.87
US$341.27
+3.5%
11.3%US$406.00US$270.00US$493.9226
Mar ’24US$301.73
US$342.48
+13.5%
10.9%US$406.00US$270.00US$447.2326
Feb ’24US$359.79
US$382.41
+6.3%
11.5%US$460.00US$299.00US$433.5328
Jan ’24US$346.40
US$382.99
+10.6%
11.4%US$460.00US$315.00US$412.2328
Dec ’23US$385.58
US$378.76
-1.8%
10.8%US$460.00US$315.00US$397.1827
Nov ’23US$333.44
US$373.18
+11.9%
10.0%US$450.00US$315.00US$344.1326
Oct ’23US$310.20
US$412.04
+32.8%
9.7%US$495.00US$334.00US$378.7926
Sep ’23US$371.62
US$425.29
+14.4%
7.6%US$495.00US$350.00US$391.1424
Aug ’23US$390.12
US$424.80
+8.9%
7.6%US$495.00US$350.00US$399.6524
Jul ’23US$403.61
US$403.69
+0.02%
10.4%US$512.00US$326.00US$336.9925
Jun ’23US$360.85
US$399.69
+10.8%
10.8%US$512.00US$335.00US$296.6725
May ’23US$338.00
US$407.74
+20.6%
11.3%US$512.00US$325.00US$311.2526
Apr ’23US$397.18
US$467.16
+17.6%
9.2%US$565.00US$410.00US$329.8727

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


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