Arcos Dorados Valuation
| AD8 Stock | EUR 7.50 0.24 3.31% |
At this time, the firm appears to be overvalued. Arcos Dorados Holdings shows a prevailing Real Value of €6.23 per share. The current price of the firm is €7.5. Our model approximates the value of Arcos Dorados Holdings from analyzing the firm fundamentals such as profit margin of 0.04 %, and Return On Equity of 0.62 as well as examining its technical indicators and probability of bankruptcy.
Overvalued
Today
Please note that Arcos Dorados' price fluctuation is somewhat reliable at this time. Calculation of the real value of Arcos Dorados Holdings is based on 3 months time horizon. Increasing Arcos Dorados' time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
The fair value of the Arcos stock is determined by what a typical buyer is willing to pay for full or partial control of Arcos Dorados Holdings. Since Arcos Dorados is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Arcos Stock. However, Arcos Dorados' 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 7.5 | Real 6.23 | Hype 7.26 | Naive 7.03 |
The real value of Arcos Stock, also known as its intrinsic value, is the underlying worth of Arcos Dorados Holdings Company, which is reflected in its stock price. It is based on Arcos Dorados' financial performance, growth prospects, management team, or industry conditions. The intrinsic value of Arcos Dorados' 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, or news.
Estimating the potential upside or downside of Arcos Dorados Holdings helps investors to forecast how Arcos 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 Arcos Dorados more accurately as focusing exclusively on Arcos Dorados' fundamentals will not take into account other important factors: Arcos Dorados Total Value Analysis
Arcos Dorados Holdings is presently estimated to have takeover price of 2.68 B with market capitalization of 1.65 B, debt of 739.22 M, and cash on hands of 148.29 M. Please note that takeover price may be misleading and is a subject to mistakes in financial statements. We encourage investors to thoroughly investigate all of the Arcos Dorados fundamentals before making investing decisions based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
2.68 B | 1.65 B | 739.22 M | 148.29 M |
Arcos Dorados Investor Information
About 44.0% of the company shares are held by institutions such as insurance companies. The company last dividend was issued on the 23rd of December 2022. Arcos Dorados Holdings had 1:1 split on the 13th of July 2021. Based on the key indicators related to Arcos Dorados' liquidity, profitability, solvency, and operating efficiency, Arcos Dorados Holdings is not in a good financial situation at the moment. It has a very high risk of going through financial straits in March.Arcos Dorados Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Arcos Dorados has an asset utilization ratio of 112.65 percent. This implies that the Company is making €1.13 for each dollar of assets. An increasing asset utilization means that Arcos Dorados Holdings is more efficient with each dollar of assets it utilizes for everyday operations.Arcos Dorados Ownership Allocation
Arcos Dorados holds a total of 130.59 Million outstanding shares. 30% of Arcos Dorados Holdings outstanding shares are owned by other corporate entities. Institutional investors are typically referred to investors that purchase positions in a given stock to benefit from reduced commissions. Consequently, institutional investors are subject to different rules and regulations than regular investors. Please look out for any change in current institutional holding as this could mean something significant has changed at the company or is about to change. Please note that no matter how many assets the company secures, if the real value of the firm is less than the current market value, you may not be able to make money on it.Arcos Dorados Profitability Analysis
The company reported the revenue of 2.66 B. Net Income was 45.49 M with profit before overhead, payroll, taxes, and interest of 324.06 M.Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Arcos Dorados' 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 Arcos Dorados and how it compares across the competition.
About Arcos Dorados Valuation
The stock valuation mechanism determines Arcos Dorados' current worth on a weekly basis. Our valuation model uses a comparative analysis of Arcos Dorados. We calculate exposure to Arcos Dorados's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Arcos Dorados's related companies.Arcos Dorados Holdings Inc. operates as a franchisee of McDonalds restaurants. The company was founded in 2007 and is based in Montevideo, Uruguay. ARCOS DORADOS operates under Restaurants classification in Germany and is traded on Frankfurt Stock Exchange.
8 Steps to conduct Arcos Dorados' Valuation Analysis
Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Arcos Dorados' 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 Arcos Dorados' valuation analysis, follow these 8 steps:- Gather financial information: Obtain Arcos Dorados' financial statements, including balance sheets, income statements, and cash flow statements.
- Determine Arcos Dorados' revenue streams: Identify Arcos Dorados' primary sources of revenue, including products or services offered, target markets, and pricing strategies.
- Analyze market data: Research Arcos Dorados' industry and market trends, including the size of the market, growth rate, and competition.
- Establish Arcos Dorados' growth potential: Evaluate Arcos Dorados' management, business model, and growth potential.
- Determine Arcos Dorados' 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 Arcos Dorados' estimated value.
- Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
Complementary Tools for Arcos Stock analysis
When running Arcos Dorados' price analysis, check to measure Arcos Dorados' 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 Arcos Dorados is operating at the current time. Most of Arcos Dorados' value examination focuses on studying past and present price action to predict the probability of Arcos Dorados' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Arcos Dorados' price. Additionally, you may evaluate how the addition of Arcos Dorados to your portfolios can decrease your overall portfolio volatility.
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