DCF Tool

DPZ

Dominos Pizza Inc – Food Service Contractors
Domino's Pizza, Inc., branded as Domino's, is an American multinational pizza restaurant chain founded in 1960. The corporation is Delaware domiciled and headquartered at the Domino's Farms Office Park in Ann Arbor, Michigan.
Analysis Results
Intrinsic Value $732.05
Latest Price $310.20
Relative Value 58% undervalued
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Cash Flow (Billions)
Analysis Parameters
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Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of 15.6%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 6.2%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 15.6%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (billion) Present value (billion)
2022 0.735 0.692
2023 0.849 0.753
2024 0.981 0.819
2025 1.13 0.891
2026 1.31 0.97
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 31.8 billion. This corresponds to a present value of 22.1 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 4.12 billion. Adding in the terminal value gives a total present value of 26.3 billion.

There are presently 35.9 million outstanding shares, so the intrinsic value per share is 732.05.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 860,540,000
Current Cash 148,160,000
Current Liabilities 590,741,000
Current Debt 55,588,000
Non-Cash Working Capital (NCWC) 177,227,000
Change in NCWC -55,372,000
EBIT 780,408,000
Tax Provision 115,238,000
Depreciation and Amortization 72,923,000
Capital Expenditure -94,172,000
Unlevered Free Cash Flow 560,056,876
Current Assets 869,384,000
Current Cash 168,821,000
Current Liabilities 470,819,000
Current Debt 2,855,000
Non-Cash Working Capital (NCWC) 232,599,000
Change in NCWC 46,034,000
EBIT 725,642,000
Tax Provision 63,834,000
Depreciation and Amortization 65,038,000
Capital Expenditure -88,768,000
Unlevered Free Cash Flow 664,504,947
Current Assets 787,617,000
Current Cash 190,615,000
Current Liabilities 453,831,000
Current Debt 43,394,000
Non-Cash Working Capital (NCWC) 186,565,000
Change in NCWC -11,098,000
EBIT 629,407,000
Tax Provision 81,928,000
Depreciation and Amortization 59,930,000
Capital Expenditure -85,565,000
Unlevered Free Cash Flow 485,831,680
Current Assets 566,951,000
Current Cash 25,438,000
Current Liabilities 379,743,000
Current Debt 35,893,000
Non-Cash Working Capital (NCWC) 197,663,000
Change in NCWC 19,612,000
EBIT 571,689,000
Tax Provision 66,706,000
Depreciation and Amortization 53,665,000
Capital Expenditure -119,888,000
Unlevered Free Cash Flow 436,118,252
Current Assets 579,780,000
Current Cash 35,768,000
Current Liabilities 398,285,000
Current Debt 32,324,000
Non-Cash Working Capital (NCWC) 178,051,000
Change in NCWC 89,804,000
EBIT 521,232,000
Tax Provision 122,248,000
Depreciation and Amortization 44,369,000
Capital Expenditure -90,011,000
Unlevered Free Cash Flow 406,155,984
Current Assets 495,873,000
Current Cash 42,815,000
Current Liabilities 403,698,000
Current Debt 38,887,000
Non-Cash Working Capital (NCWC) 88,247,000
Change in NCWC -64,291,000
EBIT 454,042,000
Tax Provision 129,980,000
Depreciation and Amortization 38,140,000
Capital Expenditure -58,555,000
Unlevered Free Cash Flow 198,104,288
Current Assets 602,637,000
Current Cash 133,449,000
Current Liabilities 375,983,000
Current Debt 59,333,000
Non-Cash Working Capital (NCWC) 152,538,000
Change in NCWC 20,075,000
EBIT 405,439,000
Tax Provision 113,426,000
Depreciation and Amortization 32,434,000
Capital Expenditure -63,282,000
Unlevered Free Cash Flow 244,486,145
Current Assets 428,361,000
Current Cash 30,855,000
Current Liabilities 265,608,000
Current Debt 565,000
Non-Cash Working Capital (NCWC) 132,463,000
Change in NCWC 25,773,000
EBIT 345,361,000
Tax Provision 96,036,000
Depreciation and Amortization 35,788,000
Capital Expenditure -70,093,000
Unlevered Free Cash Flow 208,584,068
Current Assets 351,540,000
Current Cash 14,383,000
Current Liabilities 254,611,000
Current Debt 24,144,000
Non-Cash Working Capital (NCWC) 106,690,000
Change in NCWC 60,385,000
EBIT 313,811,000
Tax Provision 82,114,000
Depreciation and Amortization 25,783,000
Capital Expenditure -40,387,000
Unlevered Free Cash Flow 245,116,696
Current Assets 306,267,000
Current Cash 54,813,000
Current Liabilities 229,498,000
Current Debt 24,349,000
Non-Cash Working Capital (NCWC) 46,305,000
Change in NCWC -33,975,000
EBIT 282,331,000
Tax Provision 68,795,000
Depreciation and Amortization 23,171,000
Capital Expenditure -29,267,000
Unlevered Free Cash Flow 135,061,574

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