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Pizza Pizza Royalty Corp (PZA) Fair Value & Analysis

Consumer Cyclical · CA · Market cap C$433M

PP Pizza Pizza Royalty Corp PZA · TO
PriceC$12.94
Fair ValueC$10.24
Upside-20.9%
Quality71/100
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Healthy Growth
Highly profitable · 76.6% net margin
Low debt · generates free cash flow
7.18% dividend yield
Mixed vs. peers (8/14)
Wide moat 70/100
Evidence: High Range C$8.63 – C$15.27 Share as image

Fair value as of: Jul 16, 2026

From 19 valuation models · updated 25 days ago

Fair value updated Jul 16, 2026, revised from C$10.23 to C$10.24 (+0.1%) since Jul 7, 2026. Share price −1.7% over the past month.

A solid business, but screening 21% overvalued on our models.

What matters now

  • A high-quality business (quality 71/100), yet the market already pays well above fair value. Quality at a full price, with little margin of safety.
  • Our model range runs from C$8.63 (bear) to C$15.27 (bull), base C$10.24. The closer the price sits to the lower half, the larger the margin of safety.
  • Quality 71/100 (solid quality) with high evidence: the data supports the verdict.
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Price vs Fair Value (5 years)

C$16.39 C$7.42 Fair Value C$10.24 May 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 16, 2026.

How to read this chart

60‑month range C$7.42 – C$16.39 · fair‑value band C$8.63 – C$15.27 · the C$12.94 price screens above the C$10.24 fair value. Dashed = 300-day average. As of Jul 16, 2026.

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Analysis

Pizza Pizza Royalty Corp (PZA) currently trades at C$12.94, while our model-based Fair Value estimate is C$10.24, implying the stock looks roughly 20.9% overvalued today. The Quality Score stands at 71/100 (solid quality), in the Consumer Cyclical sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: high).

Over the trailing twelve months, Pizza Pizza Royalty Corp generated revenue of C$40.5M at a net margin of 76.6%. Revenue declined 3.5% year over year. It earns a return on equity of 10.2%. Net debt stands at C$46.2M. Fundamentals as of Jul 16, 2026

Our scenario range runs from C$8.63 (bear case) to C$15.27 (bull case); at C$12.94, the current price sits within that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 21% below its 52-week high and 6% above its 52-week low, currently below its 200-day average. For context, the median of 10 Consumer Cyclical peers we cover trades at -47% fair-value upside, at -21%, PZA screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Growth DCF C$6.76 C$8.78 C$12.21 80
Residual Income C$7.64 C$8.35 C$10.02 76
ROIC Compounder C$6.47 C$7.54 C$8.43 72
All 19 models by family
DCF Models
FCF DCF C$6.54 C$8.65 C$12.57 38
5Y Revenue Exit C$2.57 C$3.14 C$4.01 39
5Y P/E Exit C$9.64 C$15.11 C$21.87 38
10Y Revenue Exit C$4.23 C$4.94 C$5.61 36
10Y P/E Exit C$8.22 C$12.12 C$16.07 35
Earnings-Based
Graham-Dodd C$6.39 C$10.25 C$12.36 54
EPV C$6.47 C$7.54 C$8.43 59
Dividend Discount
Gordon GGM C$7.88 C$9.20 C$10.56 70
DDM Multi-Stage C$7.88 C$9.91 C$12.18 61
Multiples
P/E Multiple C$15.50 C$20.67 C$25.84 63
P/S Multiple C$1.10 C$1.47 C$1.83 58
P/B Multiple C$11.98 C$15.97 C$19.96 55
EV/EBIT C$14.79 C$20.18 C$25.57 53
EV/Revenue C$0.0800 C$0.5200 43
Asset-Based
NCAV (Graham) C$4.52 C$6.06 C$9.04 50
Growth DCF
Growth DCF C$6.76 C$8.78 C$12.21 80
Economic Profit
Residual Income C$7.64 C$8.35 C$10.02 76
ROIC Compounder C$6.47 C$7.54 C$8.43 72
Growth Earnings
Growth-Adj P/E C$10.93 C$15.61 C$20.29 68

Widest divergence: Multiples (C$15.97) versus Asset-Based (C$6.06). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) C$40.5M
Revenue growth (YoY) -3.5%
Net margin 76.6%
Return on equity 10.2%
Free cash flow C$31.6M FY2025
P/E ratio 13.3
More key figures
Operating margin 98.6%
EPS (TTM) C$0.9500
Dividend yield 7.4%
EPS growth (YoY) -5.8%
Net debt C$46.2M FY2025

Figures from reported company fundamentals · as of Jul 16, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 71/100

Of which business quality 68 · Market factors (momentum, volatility) 43

Profitability 44
Margins and returns on capital today
Quality Growth 43
Are margins and returns improving?
Cashflow 84
Earnings quality: real cash, not paper profit
Fin. Strength 77
Balance sheet, leverage, solvency risk
Investment 97
Disciplined investing over empire-building
Low Volatility 90
Calm price path (market factor)
Momentum 25
Price trend over the last 3–12 months (market factor)
52W Momentum 19
Distance to the 52-week high (market factor)
Net Issuance 69
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

Pizza Pizza Royalty Corp., through its subsidiary, Pizza Pizza Royalty Limited Partnership, franchises and operates quick-service restaurants under the Pizza Pizza and Pizza 73 brands in Canada. The company was incorporated in 2012 and is headquartered in Toronto, Canada.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Pizza Pizza Royalty Corp reported revenue of C$40.8M in FY2025 versus C$31.9M in FY2021, a compound +6.3%/yr. Reported net income was C$31.3M in FY2025, compounding +7.0%/yr from FY2021.

Growth Quality 74/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2025)
C$40.8M
Latest YoY
+2.5%
Avg. growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+3.8%
Avg. growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+5.1%
Avg. growth/yr (18Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
−12.0%
Revenue +6.3%/yr
FY21 C$31.9M
FY22 C$36.4M
FY23 C$40.2M
FY24 C$39.8M
FY25 C$40.8M
Net income +7.0%/yr
FY21 C$23.9M
FY22 C$27.6M
FY23 C$31.0M
FY24 C$31.0M
FY25 C$31.3M
Character of growth · EPS growth decomposed (2014-2025) +1.4 % p.a.
Revenue per share +1.0 pp

of which total revenue +1.8 pp · buybacks/dilution −0.8 pp

EBIT margin +0.0 pp
Tax rate +0.1 pp
Residual (interest, one-offs) +0.3 pp

Absolute contributions in percentage points per year; they sum to the EPS growth rate. Start and end points are 3-year averages (details on hover).

PZA screens 21% overvalued. Compare with McDonald's Corporation →

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Cite: Fair Value Calculator (2026). "Pizza Pizza Royalty Corp Fair Value". https://www.fairvalue-calculator.com/stock/PZA

Peer Group

Restaurants · 227 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 71 · Top 25%
Fair Value upside −21% · Below median
Return on equity (TTM) 10% · Above median
Return on assets 7% · Top 25%
Net margin (TTM) 77% · Top 25%
Operating margin (TTM) 99% · Top 25%
Revenue growth -4% · Below median
Dividend yield (TTM) 7.2% · Top 25%
Debt / equity 0.16× · Higher than median

Valuation Multiples vs Restaurants median · lower = cheaper

P/E (TTM) 13.5× · Cheaper than median
P/B 1.03× · Cheaper than median
P/S (TTM) 7.68× · Pricier than 75% of peers
P/FCF 9.8× · Pricier than median
EV/EBITDA 8.9× · Pricier than median

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 5 · sector 28
FUTURE 0 · sector 20
PAST 41 · sector 16
HEALTH 92 · sector 97
DIVIDEND 100 · sector 58

Insider activity: 45/100

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Restaurants stocks, each showing price versus our Fair Value estimate (as of Jul 16, 2026).

Stock Price Fair Value vs Fair Value
McDonald's Corporation MCDS C$24.01 C$10.84 -55%
Starbucks Corporation SBUX $105.49 $35.83 -66%
Chipotle Mexican Grill, Inc CMG $34.63 $18.43 -47%
Yum! Brands, Inc YUM $163.54 $59.66 -64%
Restaurant Brands International Inc QSR C$104.19 C$36.37 -65%
Darden Restaurants, Inc DRI $195.74 $173.68 -11%
Yum China Holdings YUMC $43.90 $55.10 +26%
Texas Roadhouse, Inc TXRH $197.03 $104.89 -47%
Dutch Bros Inc BROS $68.36 $12.80 -81%
Domino's Pizza, Inc DPZ $322.18 $231.96 -28%

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Frequently asked questions

Is Pizza Pizza Royalty Corp (PZA) overvalued or undervalued?
As of Jul 16, 2026, our model estimates a fair value of C$10.24 versus a price of C$12.94, about −21% (overvalued).
What is the fair value of PZA?
Our model-based fair value for Pizza Pizza Royalty Corp is C$10.24 (as of Jul 16, 2026), built from audited fundamentals. The current price is C$12.94.
What is the quality score of PZA?
Pizza Pizza Royalty Corp has a Quality Score of 71/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Pizza Pizza Royalty Corp (PZA)?
Pizza Pizza Royalty Corp reported trailing-twelve-month revenue of about C$40.5M (latest available figure, as of Jul 16, 2026).
What is the net profit margin of PZA?
The net profit margin of Pizza Pizza Royalty Corp is about 76.6%, meaning it keeps roughly 76.6% of revenue as net income. Based on the latest reported figures.
Does Pizza Pizza Royalty Corp pay a dividend?
Pizza Pizza Royalty Corp currently shows a dividend yield of about 7.39% relative to its recent price (as of Jul 16, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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