Restaurants · NASDAQ
Current Price
$332.31
Intrinsic Value
Use the calculator below to estimate
Run a PE ratio stock valuation on Domino's Pizza, Inc. with auto-filled earnings data, adjustable target PE, and instant fair value estimate.
Domino's Pizza, Inc., through its subsidiaries, operates as a pizza company in the United States and internationally. It operates through three segments: U.S. Stores, International Franchise, and Supply Chain. The company offers pizzas under the Domino's brand name through company-owned and franchised stores. It also provides oven-baked sandwiches, pasta, boneless chicken and chicken wings, bread and dips side items, desserts, and soft drink products. As of January 2, 2022, the company operated approximately 18,800 stores in 90 markets. Domino's Pizza, Inc. was founded in 1960 and is based in Ann Arbor, Michigan.
Earnings Yield
5.27%
ROE (TTM)
-15.0%
Based on trailing twelve-month data, DPZ has earnings per share of N/A and trades at a PE ratio of N/A. These are key inputs for stock valuation using the PE ratio method.
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.
Whether DPZ is overvalued depends on comparing its PE ratio to Restaurants peers, historical averages, and growth expectations. A PE above the sector average may indicate overvaluation, but high-growth companies often command premium multiples. Consider pairing PE analysis with a DCF model for a more complete picture.
To value Domino's Pizza, Inc. using PE: (1) Compare the current PE against the Restaurants median to assess relative pricing, (2) check the PEG ratio 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.
The PEG ratio divides the PE ratio by the expected earnings growth rate, providing a growth-adjusted valuation metric. A PEG below 1.0 may indicate undervaluation relative to growth, while above 2.0 may suggest overvaluation. PEG is most reliable for companies with stable, predictable earnings growth.
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.
