Domino's Pizza EnterprisesASX:DMP -1.69%67 Interest Coverage is 9.20 as of Dec. 2025, which is 60% below its 10-year median of 23.10. GuruFocus rates ASX:DMP with a GF Score™ of 67/100 and a GF Value™ of A$29.90 (Possible Value Trap). The stock has 7 warning signs investors should review. Among 262 Restaurants companies, Domino's Pizza Enterprises ranks better than 68.32% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. Domino's Pizza Enterprises's
Operating Income
for the
six
months ended in Dec. 2025 was A$147 Mil. Domino's Pizza Enterprises's Interest Expense for the
six
months ended in Dec. 2025 was A$-16 Mil.
Domino's Pizza Enterprises's interest coverage for the quarter that ended in Dec. 2025 was 9.20.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Domino's Pizza Enterprises's Interest Coverage or its related term are showing as below:
ASX:DMP'
s Interest Coverage Range Over the Past 10 Years
Min: 9.01 Med: 23.1 Max: 47.34
Current: 12.05
ASX:DMP's Interest Coverage is ranked better than 68.32% of 262
companies
in the Restaurants industry
Industry Median: 6.45
vs ASX:DMP: 12.05
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
Domino's Pizza Enterprises Interest Coverage Related Terms
Domino's Pizza Enterprises Interest Coverage Historical Data
* 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.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
ASX:DMP vs MCD, SBUX, CMG: Interest Coverage Comparison
For the Restaurants subindustry, Domino's Pizza Enterprises's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Enterprises Interest Coverage vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, Domino's Pizza Enterprises's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Domino's Pizza Enterprises's Interest Coverage falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* 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 Enterprises (ASX:DMP) has a Interest Coverage of 9.20 as of Dec. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Domino's Pizza Enterprises and its competitors. This is 60% below median its historical median of 23.10. Over the past decade, Domino's Pizza Enterprises' Interest Coverage has ranged from 9.01 to 47.34. According to the industry distribution chart, Domino's Pizza Enterprises ranks #83 out of 262 companies in the Restaurants industry, placing it in the top 31.7%.
Is Domino's Pizza Enterprises' Interest Coverage too high?
Domino's Pizza Enterprises' current Interest Coverage of 9.20 is 60% below median its 10-year median of 23.10. Over the past 10 years, this metric has ranged from a low of 9.01 to a high of 47.34. The Restaurants industry median Interest Coverage is 6.45. Domino's Pizza Enterprises' value of 9.20 is 42.6% above this industry median. Based on the distribution chart, Domino's Pizza Enterprises ranks #83 out of 262 companies in the Restaurants industry, which is above the industry midpoint. Overall, Domino's Pizza Enterprises has a GF Score™ of 67/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Domino's Pizza Enterprises' Interest Coverage compare to MCD and SBUX?
According to the Restaurants industry distribution chart, Domino's Pizza Enterprises ranks #83 out of 262 companies for Interest Coverage. This puts Domino's Pizza Enterprises in the upper half of its industry. The industry median Interest Coverage is 6.45. Domino's Pizza Enterprises' value of 9.20 is 42.6% above this benchmark. Historically, Domino's Pizza Enterprises' own Interest Coverage has ranged from 9.01 to 47.34 over the past decade. While the company's 10-year median is 23.10 vs. the industry median of 6.45, Domino's Pizza Enterprises has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for a Restaurants company?
The median Interest Coverage among Restaurants companies is 6.45, based on 262 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Domino's Pizza Enterprises's current Interest Coverage of 9.20 is 42.6% 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 Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Domino's Pizza Enterprises and its competitors. For the Restaurants industry, the median Interest Coverage is 6.45 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Domino's Pizza Enterprises's current Interest Coverage is 9.20, which is 60% below median its own 10-year median of 23.10. 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 Enterprises stock overvalued right now?
Based on GuruFocus' analysis, Domino's Pizza Enterprises (ASX:DMP) is currently considered Possible Value Trap. The stock's GF Value™ is A$29.90, compared to a current price of A$15.72 — trading 47.4% below its estimated fair value. The current Interest Coverage is 9.20, which is 60% below median its 10-year median of 23.10 and 42.6% above the Restaurants industry median of 6.45. Domino's Pizza Enterprises' overall GF Score™ is 67/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Domino's Pizza Enterprises (ASX:DMP), the current Interest Coverage is 9.20 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 Enterprises (ASX:DMP) Overvalued in 2026?
Based on GuruFocus' analysis, Domino's Pizza Enterprises stock appears to be undervalued.
The current stock price of A$15.72 is trading 47.4% below its estimated GF Value™ of A$29.90.
GuruFocus considers Domino's Pizza Enterprises to be Possible Value Trap.
Key valuation signals for ASX:DMP:
Interest Coverage: 9.20 (60% below median its 10-year median of 23.10)
GF Value™: A$29.90 vs. price of A$15.72 (47.4% below fair value)
Industry Position: 42.6% above the Restaurants median (#83 of 262)
No single metric tells the full story. See the ASX:DMP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Domino's Pizza Enterprises operates fast-food pizza outlets and franchise service. The company holds the exclusive master franchise rights for the Domino's brand and network in Australia, New Zealand, Japan, Singapore, Malaysia, Taiwan, Germany, France, Belgium, Luxembourg, Cambodia, and the Netherlands. The Domino's brand is owned by NYSE-listed Domino's Pizza Inc.
67GF Score
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