Domino's Pizza Group Plc £DOM - An Updated Valuation On 3rd September 2021

The largest pizza business in the UK has finally put their overseas disaster behind them. They're adding stores while pushing for increased collections. Will this boost margins?

Summary

Domino’s is the king of takeaway pizza in the UK. The company will continue adding stores domestically while the removal of the value-destructive overseas stores will boost margins. Moreover, the success of the collection business will help increase margins further. However, my estimate of the company’s WACC has increased slightly, mainly driven by rising global equity risk premiums.

Market Price = £4.15
Estimated Value = £4.74
Price/Value = 87.5%
Monte-Carlo Price Percentile = 32%
Rating At Current Price = HOLD/ADD