Is Domino's Pizza, Inc. (DPZ) Undervalued?
Based on the current stock price of $425.56 and a P/E ratio of 24.87,Domino's Pizza, Inc. has a PEG ratio of 4.52.
The Short Answer:
Most analysts consider a PEG ratio below 1.0 to be undervalued. With a ratio of 4.52, DPZ appears to be potentially overvalued relative to its growth rate of 5.50%.
Based on a PEG ratio of 3.48 (adjusted for dividends).
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How we analyzed DPZ
We calculated the PEG (Price/Earnings-to-Growth) ratio by taking the Price-to-Earnings Ratio of 24.87and dividing it by the annual growth rate of 5.50%.
PEG = 24.87 (P/E) ÷ 5.50 (Growth) = 4.52
Frequently Asked Questions about DPZ
What is the current PEG Ratio for Domino's Pizza, Inc. (DPZ)?+
The current PEG Ratio for Domino's Pizza, Inc. is 4.52. A PEG ratio below 1.0 generally suggests the stock may be undervalued relative to its growth.
Is DPZ stock undervalued right now?+
Based on the PEG ratio of 4.52, Domino's Pizza, Inc. appears to be potentially overvalued. Investors typically look for a PEG ratio below 1.0 to find undervalued growth stocks.
What is the PEGY Ratio for DPZ?+
The PEGY ratio for Domino's Pizza, Inc. is 3.48. This metric accounts for dividend yield (1.64%), providing a more complete valuation picture.