DPZ
Domino's Pizza, Inc.
$316.52
Stable Earnings Power
80%
P/Adj-EPS × Normalized Multiple
Moderate
·
Conviction
Fair Value
Trading 21.8% below fair value
You pay
$316.52
Bear
$338.70
Fair
$404.55
Bull
$470.41
Bear
$338.70
+7.0%
$17.94 × 18x P/E
Fair
$404.55
+27.8%
$17.94 × 22x P/E
Bull
$470.41
+48.6%
$17.94 × 25x P/E
Key Value Driver
Normalized P/E multiple (22x base case)
Implied Market Multiple
17.6x
Summary
Our base-case estimate uses a valuation based on adjusted earnings per share and a normalized price-to-earnings multiple. We then blend that result with the average analyst price target of $427.06 from 52 analysts, using a 35% weight on analyst consensus. That produces an estimated intrinsic value of $404.55 per share.
Key Risks
- Growth DCF inappropriate — terminal value assumptions dominate
- EV/EBITDA misleading for regulated businesses where capex is mandated
- Regulatory risk is a fat tail not visible in normal multiples