Domino's Pizza offers pizzas under the Dominos Pizza brand name through company-owned and franchised Dominos Pizza stores. The company was founded in 1960 and is based in Ann Arbor, Michigan.
DPZ Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for DPZ, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Dominos Pizza Inc ranked in the 41th percentile in terms of potential gain offered. We should note, though, that the most conservative analysis suggests this stock will yield negative results -- and thus may be a potential short opportunity. The most interesting components of our discounted cash flow analysis for Dominos Pizza Inc ended up being:
The stock's equity weight, or the proportion of capital from equity relative to debt, is 78. Its equity weight surpasses that of 71.21% of free cash flow generating stocks in the Consumer Cyclical sector.
Dominos Pizza Inc's weighted average cost of capital (WACC) is 8%; for context, that number is higher than merely 20.14% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Consumer Cyclical that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as DPZ, try NYT, ULTA, CHUY, PII, and BSET.
Image source If the horrendous human tragedy that is COVID-19 has taught us anything about investing, it is that it is more important than ever to separate the winners from the losers when it comes to your investing decisions. The pandemic has seen companies within the same sector experience vastly...
ANN ARBOR, Mich., Sept. 28, 2020 /PRNewswire/ -- Domino's Pizza Inc. (NYSE: DPZ), the largest pizza company in the world based on global retail sales, wants to increase the amount of pizza boxes entering the recycling stream. Domino's is launching a new feature on recycling.dominos.com…
The restaurant sector has been one of the hardest hit during the pandemic, suffering from mass store closures all over the globe. But while COVID-19 essentially shut down the dine-in segment of restaurants, demand shifted toward deliveries and drive-thru purchases. As a result, franchised stores such as those of Domino's...
Nikolaos Sismanis on Seeking Alpha | September 23, 2020