The PE and PEG for DPZ are worse than the average of the market resulting in a valuation score of 61.Ĭlick Here to get the full Stock Score Report on Domino's Pizza, Inc. SummaryĪll together these valuation metrics paint a pretty poor picture for DPZ at its current price due to a overvalued PEG ratio due to strong growth. Due to their incorporation of more fundamentals of a company's overall health and focusing on the future rather than the past, PEG ratios are one of the most used valuation metrics by analysts today. A PEG ratio of 1 represents a perfect correlation between earnings growth and share price. DPZ's PEG comes from its forward price to earnings ratio being divided by its growth rate. However, trailing PE ratios do not factor in the company's projected growth rate, resulting in many newer firms having high PE ratios due to high growth potential enticing investors despite inadequate earnings.ĭPZ's 12-month-forward PE to Growth ( PEG) ratio of 2.25 is considered a poor value as the market is overvaluing DPZ in relation to the company's projected earnings growth due. Its trailing 12-month earnings per share (EPS) of 26.25 justifies the stock's current price. Not an offer or recommendation by Stocktwits. Rooms Rankings Earnings Newsletters Shop. DPZ's average trailing PE ratio shows that the firm has been trading around its fair market value recently. Real-time trade and investing ideas on Dominos Pizza Inc DPZ from the largest community of traders and investors. The historical average of roughly 15 shows a average value for DPZ stock as investors are paying fair share prices relative to the company's earnings. DPZ has a trailing twelve month Price to Earnings ( PE) ratio of 15.
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