Published on 29 May 2024 on Simply Wall St. via Yahoo Finance
Key Insights
Domino's Pizza Group's estimated fair value is UK£3.61 based on 2 Stage Free Cash Flow to EquityDomino's Pizza Group's UK£3.29 share price indicates it is trading at similar levels as its fair value estimate The UK£4.39 analyst price target for DOM is 21% more than our estimate of fair value
Today we'll do a simple run through of a valuation method used to estimate the attractiveness of Domino's Pizza Group plc (LON:DOM) as an investment opportunity by estimating the company's future cash flows and discounting them to their present value. One way to achieve this is by employing the Discounted Cash Flow (DCF) model. It may sound complicated, but actually it is quite simple!