DPZ
Domino's Pizza, Inc.
$300.88
Stable Earnings Power
80%
P/Adj-EPS × Normalized Multiple
Moderate
·
Conviction
Fair Value
Trading 24.2% below fair value
You pay
$300.88
Bear
$332.14
Fair
$396.71
Bull
$461.30
Bear
$332.14
+10.4%
$17.94 × 18x P/E
Fair
$396.71
+31.9%
$17.94 × 22x P/E
Bull
$461.30
+53.3%
$17.94 × 25x P/E
Key Value Driver
Normalized P/E multiple (22x base case)
Implied Market Multiple
16.8x
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 $404.67 from 52 analysts, using a 35% weight on analyst consensus. That produces an estimated intrinsic value of $396.71 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