Is Dominos Pizza ($DPZ) over-priced at this level?

Dominos Pizza Inc. [stckqut]DPZ[/stckqut] is currently on my Watch List and I have the company rated as a Good Company.

Wall Street analysts covering Dominos have a consensus target price of $198.75 on the stock. Target predictions might differ vastly from analyst to analyst. This target is applying estimates from analysts polled by Thomson Reuters.

Sell-side analysts are able to use multiple metrics in order to help calculate target price estimates. A widely used metric is a company’s price to earnings ratio. This calculation is derived from dividing the current share price by the projected earnings per share. Domino’s Pizza Inc currently has a P/E Ratio of 41.12.

dominos pizza photoInvestors might also evaluate a company’s PEG or price to earnings growth ratio. The PEG ratio represents the ratio of the price to earnings to the anticipated future growth rate of the company. If a company has a PEG Ratio under one, it may be seen as undervalued. If a company has a PEG Ratio over one, it may represent that the company is overvalued. A PEG Ratio near one may be viewed as the fair market value. Currently, the company has a PEG Ratio of 1.85.

Looking at stock performance, Domino’s Pizza Inc shares have recently traded $10.27 away from the 50-day moving average of $182.03 and $18.23 away from the 200-day moving average of $174.07. The stock has been recently noted -0.64% off of the 52-week high of 193.53 and +61.84% off of the 52-week low of 118.82. Monitoring the stock price relative to moving averages and highs and lows for the year may help evaluate the value of the stock in the future.

Photo by JeepersMedia

Source: Where to From Here, Analysts Weigh in on Domino’s Pizza Inc (NYSE:DPZ)

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