Shake Shack Stock Current Valuation
| SHAK Stock | USD 132.03 2.53 1.95% |
Valuation analysis of Shake Shack helps investors to measure Shake Shack's intrinsic value by examining its available valuation indicators, including the cash flow records, the balance sheet account changes and income statement patterns. At this time, Shake Shack's Enterprise Value Over EBITDA is quite stable compared to the past year. Enterprise Value Multiple is expected to rise to 61.85 this year, although Enterprise Value will most likely fall to about 557.7 M. Fundamental drivers impacting Shake Shack's valuation include:
Price Book 11.5869 | Enterprise Value 5.8 B | Enterprise Value Ebitda 53.4738 | Price Sales 4.635 | Forward PE 106.383 |
Overvalued
Today
Please note that Shake Shack's price fluctuation is very steady at this time. Calculation of the real value of Shake Shack is based on 3 months time horizon. Increasing Shake Shack's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Shake Shack's intrinsic value may or may not be the same as its current market price of 132.03, 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 132.03 | Real 111.32 | Target 73.95 | Hype 131.48 |
The intrinsic value of Shake Shack's stock can be calculated using various methods such as discounted cash flow or dividend analysis. That value may differ from its market price, which is determined by factors such as investor sentiment, market trends, headlines, and other external factors that may influence Shake Shack's stock price.
Estimating the potential upside or downside of Shake Shack helps investors to forecast how Shake 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 Shake Shack more accurately as focusing exclusively on Shake Shack's fundamentals will not take into account other important factors: Shake Shack Company Current Valuation Analysis
Shake Shack's Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.
Current Shake Shack Current Valuation | 5.78 B |
Most of Shake Shack's fundamental indicators, such as Current Valuation, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, Shake Shack is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.
Shake Current Valuation Driver Correlations
Understanding the fundamental principles of building solid financial models for Shake Shack is extremely important. It helps to project a fair market value of Shake Stock properly, considering its historical fundamentals such as Current Valuation. Since Shake Shack's main accounts across its financial reports are all linked and dependent on each other, it is essential to analyze all possible correlations between related accounts. However, instead of reviewing all of Shake Shack's historical financial statements, investors can examine the correlated drivers to determine its overall health. This can be effectively done using a conventional correlation matrix of Shake Shack's interrelated accounts and indicators.
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Shake Current Valuation Historical Pattern
Today, most investors in Shake Shack Stock are looking for potential investment opportunities by analyzing not only static indicators but also various Shake Shack's growth ratios. Consistent increases or drops in fundamental ratios usually indicate a possible pattern that can be successfully translated into profits. However, when comparing two companies, knowing each company's current valuation growth rates may not be enough to decide which company is a better investment. That's why investors frequently use a static breakdown of Shake Shack current valuation as a starting point in their analysis.
Shake Shack Current Valuation |
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Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
| Competition |
In accordance with the recently published financial statements, Shake Shack has a Current Valuation of 5.78 B. This is 68.07% lower than that of the Hotels, Restaurants & Leisure sector and 42.69% lower than that of the Consumer Discretionary industry. The current valuation for all United States stocks is 65.24% higher than that of the company.
Shake Current Valuation Peer Comparison
Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses Shake Shack's direct or indirect competition against its Current Valuation to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of Shake Shack could also be used in its relative valuation, which is a method of valuing Shake Shack by comparing valuation metrics of similar companies.Shake Shack is currently under evaluation in current valuation category among its peers.
Shake Shack ESG Sustainability
Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, Shake Shack's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Shake Shack's managers, analysts, and investors.Environmental | Governance | Social |
Shake Fundamentals
| Return On Equity | 0.019 | ||||
| Return On Asset | 0.0102 | ||||
| Profit Margin | 0.01 % | ||||
| Operating Margin | 0.04 % | ||||
| Current Valuation | 5.78 B | ||||
| Shares Outstanding | 40.03 M | ||||
| Shares Owned By Insiders | 5.10 % | ||||
| Shares Owned By Institutions | 99.34 % | ||||
| Number Of Shares Shorted | 3.9 M | ||||
| Price To Earning | 112.61 X | ||||
| Price To Book | 11.59 X | ||||
| Price To Sales | 4.63 X | ||||
| Revenue | 1.09 B | ||||
| Gross Profit | 313.04 M | ||||
| EBITDA | 111.74 M | ||||
| Net Income | 20.99 M | ||||
| Cash And Equivalents | 357.96 M | ||||
| Cash Per Share | 9.11 X | ||||
| Total Debt | 771.33 M | ||||
| Debt To Equity | 1.65 % | ||||
| Current Ratio | 2.89 X | ||||
| Book Value Per Share | 11.39 X | ||||
| Cash Flow From Operations | 132.14 M | ||||
| Short Ratio | 3.61 X | ||||
| Earnings Per Share | 0.20 X | ||||
| Price To Earnings To Growth | 2.55 X | ||||
| Target Price | 131.86 | ||||
| Number Of Employees | 12.2 K | ||||
| Beta | 1.82 | ||||
| Market Capitalization | 5.61 B | ||||
| Total Asset | 1.61 B | ||||
| Retained Earnings | 16.78 M | ||||
| Working Capital | 170.37 M | ||||
| Current Asset | 78.93 M | ||||
| Current Liabilities | 24 M | ||||
| Net Asset | 1.61 B |
About Shake Shack Fundamental Analysis
The Macroaxis Fundamental Analysis modules help investors analyze Shake Shack's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Shake Shack using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Shake Shack based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
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Is Hotels, Restaurants & Leisure space 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 Shake Shack. If investors know Shake 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 Shake Shack 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 0.397 | Earnings Share 0.2 | Revenue Per Share 30.494 | Quarterly Revenue Growth 0.147 | Return On Assets 0.0102 |
The market value of Shake Shack is measured differently than its book value, which is the value of Shake that is recorded on the company's balance sheet. Investors also form their own opinion of Shake Shack's value that differs from its market value or its book value, called intrinsic value, which is Shake Shack'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 Shake Shack's market value can be influenced by many factors that don't directly affect Shake Shack'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 Shake Shack's value and its price as these two are different measures arrived at by different means. Investors typically determine if Shake Shack is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Shake Shack'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.