Domino's Pizza P/E Ratio Analysis: A Comparative Study with Industry Peers

Domino's Pizza Inc. (DPZ) share price has increased by 1.18% to $448.08 in the current market session. Over the past month, the stock fell by 5.93%, but in the past year, it went up by 5.36%. The P/E ratio measures the current share price to the company's EPS and can be used to analyze a company's market performance. Domino's Pizza has a lower P/E than the aggregate P/E of 48.04 of the Hotels, Restaurants & Leisure industry, indicating that the stock might be undervalued. However, the P/E ratio has its limitations and should not be used in isolation when making investment decisions.

Domino's Pizza Inc. (DPZ) shares have seen a 1.18% increase to $448.08 in the current market session, marking a notable turnaround after a 5.93% decline over the past month. Over the past year, the stock has risen by 5.36%, indicating a mixed performance in the face of varying market conditions.

The recent share price movements come amidst significant insider transactions and analyst reports. On August 18, 2025, Director Goldman James A sold 1,000 shares of Domino's Pizza Inc. (DPZ) at prices ranging from $451.28 to $452 per share. This sale, while not uncommon for high-ranking executives, has raised eyebrows among investors given the company's recent financial performance and the timing of the sale, just before the company is set to report its second-quarter earnings [1].

The State of New Jersey Common Pension Fund D also reduced its stake in Domino's Pizza Inc. (DPZ) by 9.0%, bringing its total holdings to $5.26 million as of the latest SEC filing. This reduction, combined with other institutional investors' activities, highlights the complex dynamics of market sentiment surrounding the company [2].

Analysts have provided a mixed outlook on Domino's Pizza Inc. (DPZ). While some analysts express concern about slower growth [5], others remain optimistic about the company's prospects [3]. The consensus rating among analysts is a "Moderate Buy" with a price target of $489.67, reflecting a balanced view of the stock's potential [4].

The P/E ratio of Domino's Pizza Inc. (DPZ) stands at 25.83, which is lower than the industry average of 48.04 for the Hotels, Restaurants & Leisure sector. This could indicate that the stock might be undervalued, but investors should consider this metric alongside other financial indicators when making investment decisions [6].

In conclusion, the recent share price movements and insider transactions at Domino's Pizza Inc. (DPZ) have sparked interest among investors. The company's financial performance and analyst ratings will continue to influence market sentiment as it approaches its earnings report. Investors should closely monitor the company's performance and the market's reaction to the upcoming earnings report for insights into its long-term viability.

References:
[1] https://www.ainvest.com/news/goldman-james-sells-1000-shares-domino-pizza-451-28-share-2508/
[2] https://www.marketbeat.com/instant-alerts/filing-state-of-new-jersey-common-pension-fund-d-has-526-million-stock-position-in-dominos-pizza-inc-dpz-2025-08-19/
[3] https://www.investing.com/news/2025-07-25-2025-07-25-1130547-domino-s-pizza-inc-dpz-q2-earnings-preview
[4] https://www.marketbeat.com/instant-alerts/filing-state-of-new-jersey-common-pension-fund-d-has-526-million-stock-position-in-dominos-pizza-inc-dpz-2025-08-19/
[5] https://www.motleyfool.com/news/2025-07-25-2025-07-25-1130547-domino-s-pizza-inc-dpz-q2-earnings-preview
[6] https://www.marketwatch.com/news/2025-07-25-2025-07-25-1130547-domino-s-pizza-inc-dpz-q2-earnings-preview