Chipotle Mexican Valuation

CMG Stock  USD 2,923  32.07  1.09%   
At this time, the firm appears to be overvalued. Chipotle Mexican Grill shows a prevailing Real Value of $2703.41 per share. The current price of the firm is $2923.46. Our model approximates the value of Chipotle Mexican Grill from analyzing the firm fundamentals such as Return On Equity of 0.45, profit margin of 0.12 %, and Current Valuation of 82.92 B as well as examining its technical indicators and probability of bankruptcy. In general, most investors favor locking in undervalued instruments and disposing overvalued instruments since, at some point, asset prices and their ongoing real values will blend.
Price Book
26.1787
Enterprise Value
82.9 B
Enterprise Value Ebitda
42.4689
Price Sales
8.1207
Forward PE
54.9451
Overvalued
Today
2,923
Please note that Chipotle Mexican's price fluctuation is very steady at this time. Calculation of the real value of Chipotle Mexican Grill is based on 3 months time horizon. Increasing Chipotle Mexican's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Chipotle Mexican Grill is useful when determining the fair value of the Chipotle stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Chipotle Mexican. Since Chipotle Mexican is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Chipotle Stock. However, Chipotle Mexican's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value.
Historical Market  2923.46 Real  2703.41 Target  2163.53 Hype  2902.42 Naive  3024.11
The real value of Chipotle Stock, also known as its intrinsic value, is the underlying worth of Chipotle Mexican Grill Company, which is reflected in its stock price. It is based on Chipotle Mexican's financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of Chipotle Mexican's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Chipotle Mexican's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
2,703
Real Value
3,216
Upside
Estimating the potential upside or downside of Chipotle Mexican Grill helps investors to forecast how Chipotle stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Chipotle Mexican more accurately as focusing exclusively on Chipotle Mexican's fundamentals will not take into account other important factors:
Earnings
Estimates (0)
LowProjectedHigh
10.6611.4812.36
Details
Hype
Prediction
LowEstimatedHigh
2,9012,9023,216
Details
Naive
Forecast
LowNext ValueHigh
3,0233,0243,025
Details
32 Analysts
Consensus
LowTarget PriceHigh
1,9692,1642,402
Details

Chipotle Mexican Investments

(928.81 Million)

Chipotle Mexican Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining Chipotle Mexican's current stock value. Our valuation model uses many indicators to compare Chipotle Mexican value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Chipotle Mexican competition to find correlations between indicators driving Chipotle Mexican's intrinsic value. More Info.
Chipotle Mexican Grill is number one stock in price to sales category among related companies. It is number one stock in price to earning category among related companies reporting about  13.07  of Price To Earning per Price To Sales. . Comparative valuation analysis is a catch-all model that can be used if you cannot value Chipotle Mexican by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Chipotle Mexican's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Chipotle Mexican's earnings, one of the primary drivers of an investment's value.
Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Chipotle Mexican's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Chipotle Mexican and how it compares across the competition.

About Chipotle Mexican Valuation

The stock valuation mechanism determines the current worth of Chipotle Mexican Grill on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Chipotle Mexican Grill. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Chipotle Mexican Grill based exclusively on its fundamental and basic technical indicators. By analyzing Chipotle Mexican's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Chipotle Mexican's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Chipotle Mexican. We calculate exposure to Chipotle Mexican's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Chipotle Mexican's related companies.
Last ReportedProjected for 2024
Gross Profit2.6 B2.7 B
Pretax Profit Margin 0.16  0.17 
Operating Profit Margin 0.16  0.17 
Net Profit Margin 0.12  0.13 
Gross Profit Margin 0.26  0.26 

8 Steps to conduct Chipotle Mexican's Valuation Analysis

Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Chipotle Mexican's potential worth based on factors such as financial performance, market conditions, growth prospects, and overall economic environment. The result of company valuation is a single number representing a Company's current market value. This value can be used as a benchmark for various financial transactions such as mergers and acquisitions, initial public offerings (IPOs), or private equity investments. To conduct Chipotle Mexican's valuation analysis, follow these 8 steps:
  • Gather financial information: Obtain Chipotle Mexican's financial statements, including balance sheets, income statements, and cash flow statements.
  • Determine Chipotle Mexican's revenue streams: Identify Chipotle Mexican's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
  • Analyze market data: Research Chipotle Mexican's industry and market trends, including the size of the market, growth rate, and competition.
  • Establish Chipotle Mexican's growth potential: Evaluate Chipotle Mexican's management, business model, and growth potential.
  • Determine Chipotle Mexican's financial performance: Analyze its financial statements to assess its historical performance and future potential.
  • Choose a valuation method: Consider the Company's specific circumstances and choose an appropriate valuation method, such as the discounted cash flow (DCF) or comparable analysis method.
  • Calculate the value: Apply the chosen valuation method to the financial information and market data to calculate Chipotle Mexican's estimated value.
  • Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
Note: This is a general outline, and different approaches and methods may be used depending on the type and size of the company being valued. We also recomment to seek professional assistance to ensure accuracy.

Chipotle Mexican Growth Indicators

Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, investing in growth stocks can be very risky. If the company such as Chipotle Mexican does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
Common Stock Shares Outstanding27.7 M
Quarterly Earnings Growth Y O Y0.273
Forward Price Earnings54.9451

Chipotle Mexican Current Valuation Indicators

Valuation refers to the process of determining the present value of Chipotle Mexican Grill and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Chipotle we look at many different elements of the entity such as Chipotle's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Chipotle Mexican's valuation analysis is also a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Chipotle Mexican's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Chipotle Mexican, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Chipotle Mexican's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Chipotle Mexican's worth.
When determining whether Chipotle Mexican Grill is a strong investment it is important to analyze Chipotle Mexican's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Chipotle Mexican's future performance. For an informed investment choice regarding Chipotle Stock, refer to the following important reports:
Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Chipotle Mexican Grill. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in population.
You can also try the Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.

Complementary Tools for Chipotle Stock analysis

When running Chipotle Mexican's price analysis, check to measure Chipotle Mexican's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Chipotle Mexican is operating at the current time. Most of Chipotle Mexican's value examination focuses on studying past and present price action to predict the probability of Chipotle Mexican's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Chipotle Mexican's price. Additionally, you may evaluate how the addition of Chipotle Mexican to your portfolios can decrease your overall portfolio volatility.
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Is Chipotle Mexican's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Chipotle Mexican. If investors know Chipotle will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Chipotle Mexican listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.273
Earnings Share
44.44
Revenue Per Share
358.253
Quarterly Revenue Growth
0.154
Return On Assets
0.1333
The market value of Chipotle Mexican Grill is measured differently than its book value, which is the value of Chipotle that is recorded on the company's balance sheet. Investors also form their own opinion of Chipotle Mexican's value that differs from its market value or its book value, called intrinsic value, which is Chipotle Mexican's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Chipotle Mexican's market value can be influenced by many factors that don't directly affect Chipotle Mexican's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Chipotle Mexican's value and its price as these two are different measures arrived at by different means. Investors typically determine if Chipotle Mexican is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Chipotle Mexican's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.