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Domino's Pizza Inc. (DPZ) — WACC Analysis

WACC Breakdown

Domino's Pizza Inc. (DPZ) has a weighted average cost of capital (WACC) of 6.5%. The cost of equity is 7.9%, derived from a beta of 0.64 and a risk-free rate of 4.7%. The after-tax cost of debt is 3.2%. The capital structure is 70.4% equity and 29.6% debt.

Interpretation

A WACC of 6.5% suggests that the market views Domino's Pizza Inc. as relatively low-risk, with a lower cost of financing.

Investors can compare DPZ's WACC of 6.5% against industry peers to gauge its relative financing costs. A beta of 0.64 reflects the stock's volatility relative to the broader market.

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VALUATION

DPZ WACC: 6.54% for Domino's Pizza Inc.

Current inputs imply a 7.94% cost of equity and a 4.06% pre-tax cost of debt. Use this discount rate as a starting point for DCF validation.

[01]Current Market Data
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[02]
WACC Calculation Process
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Market Data Loaded
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Company Data Fetched
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Beta Calculated (5Y)
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Inputs Auto-Populated
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WACC Calculated
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Step 2: Enter Ticker Symbol
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Step 4: Review Auto-Populated WACC Inputs

Values are automatically populated from real data. You can adjust them manually if needed.

4.30%
1.000
4.23%
5.00%
21.00%
70.00%
Debt: 30.00%Equity: 70.00%

Please enter a valid company ticker to calculate WACC

Domino's Pizza Inc. Common Stock (DPZ) WACC Results
Weighted Average Cost of Capital
6.54%
Cost of Equity
7.94%
Risk-Free Rate4.73%
Beta0.64
Market Risk Premium4.23%
Cost of Debt
3.21%
Pre-Tax Cost of Debt4.06%
Tax Rate21.00%
Tax Shield0.85%
Capital Structure
Equity: 70.37%($11.58B)
Debt: 29.63%($4876.22M)
Equity Component
5.59%
70.37% × 7.94%
Debt Component
0.95%
29.63% × 3.21%

Domino's Pizza Inc. (DPZ) WACC in context

Domino's Pizza Inc. (DPZ) currently screens with an estimated WACC of 6.54%. That blends a 7.94% cost of equity, a 4.06% pre-tax cost of debt, and a 70.37% equity weight into the discount rate you would typically use in a DCF model.

screens as a relatively low discount rate, which usually supports higher DCF values.

What DPZ WACC implies

A 6.54% discount rate screens as a relatively low discount rate, which usually supports higher DCF values.

How this page calculates DPZ

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 0.64 and equity accounts for 70.37% of capital.

What to do next

Validate business quality on the company page, then carry the same discount-rate assumptions into the DCF page to test fair value sensitivity.

Disclaimer: This is not financial advice. Data sourced from SEC EDGAR and Polygon.io. Past performance does not guarantee future results. Always conduct your own research before making investment decisions.