Darden Restaurants Valuation
| DRI Stock | USD 194.47 2.44 1.27% |
At this time, the firm appears to be undervalued. Darden Restaurants shows a prevailing Real Value of $204.63 per share. The current price of the firm is $194.47. Our model computes the value of Darden Restaurants from reviewing the firm fundamentals such as Profit Margin of 0.09 %, shares outstanding of 117.03 M, and Current Valuation of 28.33 B as well as analyzing its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Darden Restaurants' valuation include:
Price Book 10.2009 | Enterprise Value | Enterprise Value Ebitda 15.146 | Price Sales 1.9348 | Forward PE 17.8891 |
Undervalued
Today
Please note that Darden Restaurants' price fluctuation is very steady at this time. Calculation of the real value of Darden Restaurants is based on 3 months time horizon. Increasing Darden Restaurants' time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Since Darden Restaurants is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Darden Stock. However, Darden Restaurants' 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 194.47 | Real 204.63 | Target 195.79 | Hype 194.16 |
The intrinsic value of Darden Restaurants' 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 Darden Restaurants' stock price.
Estimating the potential upside or downside of Darden Restaurants helps investors to forecast how Darden 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 Darden Restaurants more accurately as focusing exclusively on Darden Restaurants' fundamentals will not take into account other important factors: When choosing an evaluation method for Darden Restaurants, ensure it is appropriate for the firm given its current financial situation and market classification. If more than one evaluation category is relevant, we suggest using all methods to arrive at a better estimate.
Darden Restaurants Cash |
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Darden Valuation Trend
Darden Restaurants' real value analysis enables investors to forecast the earnings more efficiently. Using both Darden Restaurants' enterprise value as well as its market capitalization is the best way to gauging the value of the company and is usually enough for investors to make market timing decisions.
Darden Revenue by Product
Darden Restaurants Total Value Analysis
Darden Restaurants is currently projected to have company total value of 28.33 B with market capitalization of 22.76 B, debt of 5.43 B, and cash on hands of 367.8 M. Please note that company total value may be misleading and is a subject to accounting gimmicks. We encourage investors to carefully check all of the Darden Restaurants fundamentals before making security assessment based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
28.33 B | 22.76 B | 5.43 B | 367.8 M |
Darden Restaurants Investor Information
About 97.0% of the company shares are held by institutions such as insurance companies. The company has Price/Earnings To Growth (PEG) ratio of 1.88. Darden Restaurants recorded earning per share (EPS) of 8.87. The entity last dividend was issued on the 10th of April 2025. The firm had 10000:8939 split on the 10th of November 2015. Based on the key indicators related to Darden Restaurants' liquidity, profitability, solvency, and operating efficiency, Darden Restaurants is not in a good financial situation at the present time. It has a very high chance of going through financial crunch in May.| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
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| Operating Profit Margin | 0.0676 | 0.1061 |
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| Total Cash From Operating Activities | 2 B | 1.9 B |
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| Operating Income | 1.6 B | 1.5 B |
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Darden Restaurants Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Darden Restaurants has an asset utilization ratio of 100.59 percent. This signifies that the Company is making $1.01 for each dollar of assets. An increasing asset utilization means that Darden Restaurants is more efficient with each dollar of assets it utilizes for everyday operations.Darden Restaurants Ownership Allocation
Darden Restaurants holds a total of 117.03 Million outstanding shares. The majority of Darden Restaurants outstanding shares are owned by other corporate entities. These outside corporations are usually referred to as non-private investors looking to obtain positions in Darden Restaurants to benefit from reduced commissions. Consequently, institutional investors are subject to a different set of regulations than regular investors in Darden Restaurants. Please pay attention to any change in the institutional holdings of Darden Restaurants as this could imply that something significant has changed or is about to change at the company. Please note that on February 14, 2025, Representative Rob Bresnahan of US Congress acquired under $15k worth of Darden Restaurants's common stock.Darden Restaurants Profitability Analysis
The company reported the last year's revenue of 11.39 B. Total Income to common stockholders was 1.03 B with profit before taxes, overhead, and interest of 2.53 B.Darden Restaurants Past Distributions to stockholders
About Darden Restaurants Valuation
An absolute valuation paradigm, as applied to Darden Stock, attempts to find the value of Darden Restaurants based on its fundamental and basic technical indicators. By analyzing Darden Restaurants's financials, quarterly and monthly indicators, and their related drivers, such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Darden Restaurants'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 Darden Restaurants. We calculate exposure to Darden Restaurants's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Darden Restaurants's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 2.8 B | 1.5 B | |
| Pretax Profit Margin | (0.02) | (0.02) | |
| Operating Profit Margin | 0.11 | 0.07 | |
| Net Loss | (0.01) | (0.01) | |
| Gross Profit Margin | 0.18 | 0.24 |
A single share of Darden Restaurants represents a small ownership stake in the entity. As a stockholder of Darden, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.
Darden Restaurants Dividends Analysis For Valuation
As of now, Darden Restaurants' Dividend Yield is increasing as compared to previous years. The Darden Restaurants' current Dividend Paid And Capex Coverage Ratio is estimated to increase to 1.21, while Dividends Paid is forecasted to increase to (686.5 M). . The Darden Restaurants' current Price Earnings To Growth Ratio is estimated to increase to 1.92, while Retained Earnings are forecasted to increase to (38.8 M).
| Last Reported | Projected for Next Year | ||
| Dividends Paid | -722.7 M | -686.5 M | |
| Dividend Yield | 0.03 | 0.04 | |
| Dividend Payout Ratio | (6.55) | (6.22) | |
| Dividend Paid And Capex Coverage Ratio | 0.87 | 1.21 |
There are various types of dividends Darden Restaurants can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of Darden shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from Darden Restaurants directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Darden pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Darden Restaurants by the value of the dividends paid out.
Darden Restaurants 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.
| Common Stock Shares Outstanding | 120.8 M | |
| Quarterly Earnings Growth Y O Y | 0.055 | |
| Forward Price Earnings | 17.8891 |
Darden Restaurants Current Valuation Indicators
Valuation refers to the process of determining the present value of Darden Restaurants and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Darden we look at many different elements of the entity such as Darden's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Darden Restaurants, 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 Darden Restaurants' 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 Darden Restaurants' worth.Complementary Tools for Darden Stock analysis
When running Darden Restaurants' price analysis, check to measure Darden Restaurants' 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 Darden Restaurants is operating at the current time. Most of Darden Restaurants' value examination focuses on studying past and present price action to predict the probability of Darden Restaurants' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Darden Restaurants' price. Additionally, you may evaluate how the addition of Darden Restaurants to your portfolios can decrease your overall portfolio volatility.
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