Published on 26 Oct 2023 on Simply Wall St. via Yahoo Finance
Calculating The Intrinsic Value Of Domino's Pizza Group plc (LON:DOM)
Key Insights
The projected fair value for Domino's Pizza Group is UK£2.92 based on 2 Stage Free Cash Flow to EquityWith UK£3.45 share price, Domino's Pizza Group appears to be trading close to its estimated fair valueOur fair value estimate is 29% lower than Domino's Pizza Group's analyst price target of UK£4.09
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. We will use the Discounted Cash Flow (DCF) model on this occasion. Believe it or not, it's not too difficult to follow, as you'll see from our example!