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$35.81 domino's pizza enterprises limited

DMP, just what is happening?, page-11

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PatienceToWin

12,949 Posts.

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19/02/21

10:44

Post #: 51148615
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Originally posted by kcityshuffle ↑

IMO share price is still undervalued vs intrinsic value.

Based on my analysis (caveating that I own shares in DMP and the below is based on my own calculations so please complete your own research prior to making any investment decisions):

DMP's top-line revenue increased 33% in FY20 and has grown at an average of circa ¬22% in the past 5 years.

Free cash flow to equity was approximately $250m in FY20 (including approx. $311m in operating cash flow, $100m capex, and $37m net debt issued).

Applying the FCFE Gordon Growth valuation model shows an intrinsic value range of $103/share to $315/share, assuming long term growth rates of 7% to 9% to FCFE.

This assumes a 10% required return on equity.

This implies a range of potential upside to intrinsic value of approx. 12% to 200%, with 70% as a mid range.

There are not many ASX listed companies with earnings growth at circa 20-30% annually. DMP has the earnings growth of a growth stock, as such it is valued like one in the market.

IMO DYOR.

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"

Applying the FCFE Gordon Growth valuation model shows an intrinsic value range of $103/share to $315/share, assuming long term growth rates of 7% to 9% to FCFE."

Okay lets look at $150 by September report.
DMP Price at posting: $108.69 Sentiment: Buy Disclosure: Held
1 Upvote

0 Great analysis

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(20min delay)
Last $35.81		Change 0.235(0.66%)		Mkt cap ! $3.261B

Open	High	Low	Value	Volume
$35.90	$36.20	$35.77	$4.877M	135.5K

Buyers (Bids)

No.	Vol.	Price($)
2	39	$35.79

Sellers (Offers)

Price($)	Vol.	No.
$35.82	151	4

View Market Depth

No.	Vol.	Price($)
2	36	35.860
3	602	35.850
2	99	35.840
2	99	35.830
3	114	35.820

Price($)	Vol.	No.
35.880	64	1
35.890	90	7
35.900	208	8
35.910	193	5
35.920	104	2

Last trade - 12.06pm 12/07/2024 (20 minute delay)

DMP (ASX) Chart