Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
Degree of Financial Leverage (DFL) measures the percentage change in EPS for a unit change in Earnings Before Interest and Taxes (EBIT).
Domino's Pizza Group's Degree of Financial Leverage for the quarter that ended in Dec. 2025 was 1.28. The higher Degree of Financial Leverage, the more volatile earnings will be.
The industry rank for Domino's Pizza Group's Degree of Financial Leverage or its related term are showing as below:
CHIX:DOMl's Degree of Financial Leverage is ranked worse than 64.41% of 354
companies
in the Restaurants industry
Industry Median: 1.01
vs CHIX:DOMl: 1.28
Domino's Pizza Group (CHIX:DOMl) Degree of Financial Leverage Explanation
Degree of Financial Leverage (DFL) is a leverage ratio that measures the sensitivity of a company’s Earnings per Share (EPS) to fluctuations in its operating income, also referred to as Earnings Before Interest and Taxes (EBIT), resulting from adjustments in its capital structure. DFL is an essential tool for companies to assess the appropriate level of debt or financial leverage in their capital structure. When EBIT remains relatively stable, it results in stable earnings and earnings per share. In such cases, the company may consider taking on substantial debt. However, for companies operating in industries with significant fluctuations in EBIT, it is advisable to keep debt at a manageable level.
The higher Degree of Financial Leverage, the more volatile earnings will be. Because interest is a fixed expense, leverage can amplify earnings and EPS. This is beneficial when EBIT is growing, but it can become problematic in tough economic conditions when EBIT is under pressure.
Be Aware
The use of financial leverage varies across different industries and business sectors, and the application of Degree of Financial Leverage (DFL) should be adjusted accordingly.
Domino's Pizza Group Degree of Financial Leverage Related Terms
Domino's Pizza Group Degree of Financial Leverage Historical Data
* Premium members only.
The historical data trend for Domino's Pizza Group's Degree of Financial Leverage can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Domino's Pizza Group Degree of Financial Leverage Chart
CHIX:DOML vs MCD, SBUX, YUM: Degree of Financial Leverage Comparison
For the Restaurants subindustry, Domino's Pizza Group's Degree of Financial Leverage, along with its competitors' market caps and Degree of Financial Leverage data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Domino's Pizza Group Degree of Financial Leverage vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, Domino's Pizza Group's Degree of Financial Leverage distribution charts can be found below:
* The bar in red indicates where Domino's Pizza Group's Degree of Financial Leverage falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
** TTM data of EPS and EBIT was used to calculate Degree of Financial Leverage.
*** Please be aware that the Degree of Financial Leverage calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
What does a Degree of Financial Leverage of 1.28 mean?
Domino's Pizza Group (CHIX:DOML) has a Degree of Financial Leverage of 1.28 as of Dec. 2025. Degree of Financial Leverage (DFL) measures the percentage change in EPS for a unit change in EBIT. View historical data for Domino's Pizza Group and its competitors. According to the industry distribution chart, Domino's Pizza Group ranks #228 out of 354 companies in the Restaurants industry, placing it in the top 64.4%.
Is Domino's Pizza Group's Degree of Financial Leverage too high?
Domino's Pizza Group's current Degree of Financial Leverage is 1.28. The Restaurants industry median Degree of Financial Leverage is 1.01. Domino's Pizza Group's value of 1.28 is 26.7% above this industry median. Based on the distribution chart, Domino's Pizza Group ranks #228 out of 354 companies in the Restaurants industry, which is below the industry midpoint. Overall, Domino's Pizza Group has a GF Score™ of 75/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Domino's Pizza Group's Degree of Financial Leverage compare to MCD and SBUX?
According to the Restaurants industry distribution chart, Domino's Pizza Group ranks #228 out of 354 companies for Degree of Financial Leverage. This places Domino's Pizza Group in the lower half of its industry. The industry median Degree of Financial Leverage is 1.01. Domino's Pizza Group's value of 1.28 is 26.7% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Degree of Financial Leverage for a Restaurants company?
The median Degree of Financial Leverage among Restaurants companies is 1.01, based on 354 companies in the industry. Companies in the top quartile (top 25%) have a Degree of Financial Leverage significantly above this median, while those in the bottom quartile fall well below. However, Degree of Financial Leverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Domino's Pizza Group's current Degree of Financial Leverage of 1.28 is 26.7% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Degree of Financial Leverage mean?
A high Degree of Financial Leverage can signal that a stock is expensive relative to its fundamentals. Degree of Financial Leverage (DFL) measures the percentage change in EPS for a unit change in EBIT. View historical data for Domino's Pizza Group and its competitors. For the Restaurants industry, the median Degree of Financial Leverage is 1.01 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Domino's Pizza Group's current Degree of Financial Leverage is 1.28. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Domino's Pizza Group stock overvalued right now?
Based on GuruFocus' analysis, Domino's Pizza Group (CHIX:DOML) is currently considered Significantly Undervalued. The stock's GF Value™ is £3.40, compared to a current price of £2.00 — trading 41.1% below its estimated fair value. The current Degree of Financial Leverage is 1.28 and 26.7% above the Restaurants industry median of 1.01. Domino's Pizza Group's overall GF Score™ is 75/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Degree of Financial Leverage calculated?
Degree of Financial Leverage is calculated from a company's financial statements. For Domino's Pizza Group (CHIX:DOML), the current Degree of Financial Leverage is 1.28 as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Domino's Pizza Group (CHIX:DOML) Overvalued in 2026?
Based on GuruFocus' analysis, Domino's Pizza Group stock appears to be undervalued.
The current stock price of £2.00 is trading 41.1% below its estimated GF Value™ of £3.40.
GuruFocus considers Domino's Pizza Group to be Significantly Undervalued.
Key valuation signals for CHIX:DOML:
Degree of Financial Leverage: 1.28
GF Value™: £3.40 vs. price of £2.00 (41.1% below fair value)
Industry Position: 26.7% above the Restaurants median (#228 of 354)
No single metric tells the full story. See the CHIX:DOML stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Domino's Pizza Group PLC is the UK's pizza brand and a player in the Irish market. The company owns, operates and franchises Domino's stores in the UK and the Republic of Ireland. The company also has an associate investment in Germany and Luxembourg. The company is organised into two geographical business units based on the operating models of the regions, the UK and Ireland and International. Revenue included in each segment includes all sales made to franchise stores (royalties, sales to franchisees and rental income) and by corporate stores located in that segment.
75GF Score
Get the complete analysis for CHIX:DOML
Degree of Financial Leverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
CHIX:DOML has been successfully added to your 
