Pizza Pizza Royalty Corp. (PZA.TO) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

+25.6%

CA$13.20

vs CA$10.51 price

Levered DCF

CA$12.93

After debt service

Piotroski score

4 / 9

Average

Altman Z-score

2.36

Grey zone

Rating

Overall 4 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	16.61×	13.84×	15.28×	15.86×	16.24×	12.11×	11.49×	10.53×
P/B	1.73×	1.44×	1.61×	1.5×	1.33×	1.03×	1.09×	0.99×
P/S	12.76×	10.76×	11.8×	12.05×	12.12×	9.31×	8.69×	8×
EV / EBITDA	14.18×	12.02×	12.99×	13.49×	13.74×	10.76×	10.12×	9.45×
Gross margin	100.0%	100.0%	100.0%	100.0%	100.0%	100.0%	100.0%	100.0%
Operating margin	98.0%	98.2%	98.4%	98.3%	98.2%	98.0%	98.6%	98.4%
Net margin	76.8%	77.8%	77.0%	75.6%	74.9%	77.0%	76.0%	75.9%
Current ratio	2.06×	0.19×	2.91×	2.85×	3.33×	3.21×	2.16×	2.44×
Debt / equity	0.16×	0.16×	0.16×	0.16×	0.16×	0.16×	0.16×	0.16×
Interest coverage	25.04×	30.4×	30.92×	27.08×	23.14×	25.49×	26.66×	27.44×
Dividend yield	6.5%	7.8%	6.5%	6.2%	6.1%	7.9%	9.2%	10.1%
Payout ratio	108.0%	108.2%	99.4%	98.8%	98.6%	95.9%	105.6%	106.4%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	10.4%	10.4%	10.5%	9.4%	8.2%	8.5%	9.5%	9.4%
Return on invested capital	8.7%	8.6%	8.7%	7.8%	6.9%	7.0%	8.0%	7.9%
Return on assets	8.3%	8.3%	8.4%	7.5%	6.6%	6.8%	7.6%	7.6%
Free cash flow yield	6.1%	7.2%	6.6%	6.6%	6.4%	8.5%	9.1%	9.8%
Earnings yield	6.0%	7.2%	6.5%	6.3%	6.2%	8.3%	8.7%	9.5%
Enterprise value	CA$566.8M	CA$474.4M	CA$518.9M	CA$483.9M	CA$431.1M	CA$340.7M	CA$358.7M	CA$329.2M
Net debt / EBITDA	1.16×	1.17×	1.11×	1.25×	1.41×	1.41×	1.31×	1.32×
Cash conversion cycle (days)	33	35	37	37	36	32	34	33