Domino's Pizza, Inc. (DPZ) Fair Value & PE Analysis
Restaurants · NASDAQ
Current Price
$341.85
PE Ratio (TTM)
19.3x
Intrinsic Value
$407.22
+16.1% margin of safety
What Is Domino's Pizza, Inc.'s Fair Value?
As of 2026-08-21, applying a 19.1x earnings multiple to Domino's Pizza, Inc.'s (DPZ) earnings per share of $17.9 yields a fair value estimate of $407.22 per share, versus a market price of $341.85.
Fair value from earnings multiples is sensitive to the multiple you choose. Across the sensitivity grid the estimate spans $328.17 to $497.95. This is a relative estimate anchored to earnings, not a statement of fact. For a cash flow based view, see the intrinsic value estimate on the DCF page.
How the PE model works · Recalculate in PE mode · DPZ intrinsic value (DCF view)
Is Domino's Pizza, Inc. (DPZ) Overvalued?
At $341.85, DPZ trades about 16.1% below its PE-based fair value estimate, a modest discount to its earnings power, though not enough to call it cheap outright.
COMPETITIVE MOAT
↑Global Franchise Network Scale
Domino's operates a vast international franchise network, enabling rapid expansion and efficient market penetration. This scale provides significant operational leverage and brand recognition.
↑Technology and Delivery Infrastructure
The company has invested heavily in its digital ordering platforms and delivery logistics. This sophisticated infrastructure creates a seamless customer experience and operational efficiency.
↑Brand Recognition and Consumer Habits
Domino's enjoys strong brand loyalty and has ingrained itself into consumer habits for convenient pizza ordering. This established presence makes it a go-to choice for many.
INVESTMENT RISKS
↓Labor and Ingredient Cost Volatility
Rising labor wages and fluctuating ingredient costs can significantly impact profitability, especially for a franchise-heavy model. Managing these pressures across numerous franchisees is complex.
↓Dependence on Franchisee Performance
Domino's relies heavily on its franchisees for operational execution and brand representation. Underperforming franchisees can negatively affect the overall brand and financial results.
↓Evolving Food Technology and Trends
The food industry is subject to rapid changes in consumer tastes and dietary trends. Failure to adapt to new preferences or emerging food technologies could lead to market share erosion.
Base case
DPZ base case PE valuation
Intrinsic Value
$407.22
Margin of safety
+16.1%
Expected annual return
+3.6%
Base case assumptions: 8.6% annual earnings growth, 19.1x target PE, 10% discount rate, 5 year projection. Data as of 2026-08-21.
This base case uses default assumptions and is not financial advice. The fair value changes significantly when the target PE or earnings growth rate changes. Open the calculator to set your own assumptions and see the full sensitivity range.
Customize the DPZ PE valuation
Adjust the target PE, earnings growth, and discount rate to see how the fair value and margin of safety for Domino's Pizza, Inc. respond.
Open PE Calculator for DPZCompany Overview
Domino's Pizza, Inc. operates as a leading international and domestic purveyor of pizza, managing its extensive operations through three distinct segments: U.S. Stores, International Franchise, and Supply Chain. The company is primarily recognized for its Domino's-branded pizzas, which are distributed via a vast network of both corporate-owned and independently franchised outlets. Beyond its flagship product, the menu also encompasses a variety of other offerings, including oven-baked sandwiches, pasta dishes, boneless and winged chicken, various bread and dip accompaniments, desserts, and soft drink beverages. As of January 2, 2022, the enterprise boasted approximately 18,800 locations spanning 90 global markets. Established in 1960, Domino's Pizza, Inc. is headquartered in Ann Arbor, Michigan.
Financial Metrics — DPZ PE Stock Valuation Data
PE Ratio (TTM)
19.3x
PEG Ratio
9.05
Earnings Yield
5.24%
ROE (TTM)
-15.1%
Revenue/Share (TTM)
$150.90
Dividend Yield
2.18%
Debt/Equity
n/m
Frequently Asked Questions
What is the PE ratio of DPZ?
The trailing twelve-month PE ratio of DPZ reflects how much investors pay per dollar of Domino's Pizza, Inc.'s earnings. This metric is most useful when compared to Restaurants peers and the company's own historical range.
Is DPZ overvalued based on PE ratio?
DPZ's PE of 19.3x combined with a PEG ratio of 9.05 provides a growth-adjusted perspective. A PEG above 2.0 means the P/E is high relative to the earnings growth rate. Keep in mind that PE-based valuation works best for profitable, mature companies — for high-growth or cyclical Restaurants, a DCF analysis may be more appropriate.
How do I value DPZ stock using PE ratio?
To value Domino's Pizza, Inc. using PE: (1) Compare the current PE (19.3x) against the Restaurants median to assess relative pricing, (2) check the PEG ratio (9.05) to adjust for growth expectations, (3) review the 5-year PE range to identify where the stock sits historically, and (4) estimate fair value by multiplying a target PE by forward EPS estimates. This relative approach complements DCF's absolute valuation.
What is the PEG ratio of DPZ?
DPZ's PEG ratio is 9.05, calculated by dividing the PE ratio (19.3x) by the expected earnings growth rate. A PEG above 2.0 means the P/E is high relative to the expected earnings growth rate. Note that PEG accuracy depends on the reliability of growth estimates.
Should I use PE ratio or DCF for DPZ stock valuation?
PE ratio gives a quick relative read — how DPZ is priced versus Restaurants peers. DCF provides an absolute value based on projected free cash flows. For the most reliable valuation, use PE as a quick comparability screen and DCF for a deeper fundamental analysis. Each method has blind spots: PE ignores capital structure and cash flow quality, while DCF is sensitive to growth and discount rate assumptions.
Learn More
- See DPZ DCF Valuation → — Intrinsic value via Discounted Cash Flow analysis
- PE Methodology — Step-by-step guide to PE ratio stock valuation
- DCF Methodology — Guide to discounted cash flow analysis
- PE Ratio — Understanding the price-to-earnings ratio
- Intrinsic Value — How to evaluate stock fair value
Related PE Valuations
All Consumer Cyclical valuationsP/E and DCF value DPZ with different methods and assumptions, so the two conclusions can differ. Compare the DCF intrinsic value.
Price as of 2026-08-21. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.