Shake Shack Valuation
| SHAK Stock | USD 93.67 0.95 1.02% |
At this time, the company appears to be undervalued. Shake Shack has a current Real Value of $101.11 per share. The regular price of the company is $93.67. Our model measures the value of Shake Shack from inspecting the company fundamentals such as Operating Margin of 0.05 %, shares outstanding of 40.25 M, and Return On Equity of 0.0908 as well as reviewing its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Shake Shack's valuation include:
Undervalued
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 93.67, 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 93.67 | Real 101.11 | Target 110.91 | Hype 93.67 | Naive 85.41 |
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: Traditionally, analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Shake Shack's intrinsic value based on its ongoing forecasts of Shake Shack's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Shake Shack's closest peers.
Shake Shack Cash |
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Shake Revenue by Product
Shake Shack Total Value Analysis
Shake Shack is at this time forecasted to have valuation of 4.04 B with market capitalization of 3.96 B, debt of 865.36 M, and cash on hands of 357.96 M. Please note that valuation may be misleading and is a subject to auditing or accounting errors. We encourage investors to vigilantly validate all of the Shake Shack fundamentals before making equity appraisal based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
4.04 B | 3.96 B | 865.36 M | 357.96 M |
Shake Shack Investor Information
About 95.0% of the company shares are owned by institutional investors. The company has Price/Earnings To Growth (PEG) ratio of 2.55. Shake Shack had not issued any dividends in recent years. Shake Shack is doing better financially today then in previous quarter. It has a moderate chance of reporting better financial numbers in March.| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
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| Total Cash From Operating Activities | 206.7 M | 196.8 M |
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Shake Shack Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Shake Shack has an asset utilization ratio of 73.81 percent. This suggests that the Company is making $0.74 for each dollar of assets. An increasing asset utilization means that Shake Shack is more efficient with each dollar of assets it utilizes for everyday operations.Shake Shack Profitability Analysis
Taking into consideration Shake Shack's profitability measurements, Shake Shack may not be well positioned to generate adequate gross income at the present time. It has a very high chance of underperforming in March. Profitability indicators assess Shake Shack's ability to earn profits and add value for shareholders.Net Income | First Reported 2012-03-31 | Previous Quarter 17.1 M | Current Value 12.5 M | Quarterly Volatility 7 M |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.5 | 0.51 |
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For Shake Shack profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Shake Shack to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Shake Shack utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Shake Shack's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Shake Shack over time as well as its relative position and ranking within its peers.
Shake Shack Earnings per Share Projection vs Actual
The next projected EPS of Shake Shack is estimated to be 0.1394 with future projections ranging from a low of 0.06 to a high of 0.2. Shake Shack's most recent 12-month trailing earnings per share (EPS TTM) is at 1.02. Please be aware that the consensus of earnings estimates for Shake Shack is based on EPS before non-recurring items and includes expenses related to employee stock options.Shake Shack Earnings Estimation Breakdown
The calculation of Shake Shack's earning per share is based on the data from the past 12 consecutive months, used for reporting the company's financial figures. The next projected EPS of Shake Shack is estimated to be 0.1394 with the future projection ranging from a low of 0.06 to a high of 0.2. Please be aware that this consensus of annual earnings estimates for Shake Shack is based on EPS before non-recurring items and includes expenses related to employee stock options.Last Reported EPS
0.06 Lowest | Expected EPS | 0.20 Highest |
Shake Shack Earnings Projection Consensus
Suppose the current estimates of Shake Shack's value are higher than the current market price of the Shake Shack stock. In this case, investors may conclude that Shake Shack is overpriced and will exhibit bullish sentiment. On the other hand, if the present value is lower than the stock price, analysts may conclude that the market undervalues the equity. These scenarios may suggest that the market is not as efficient as it should be at the estimation time, and Shake Shack's stock will quickly adjusts to the new information provided by the consensus estimate.
| Number of Analysts | Historical Accuracy | Last Reported EPS | Estimated EPS for 31st of March 2026 | Current EPS (TTM) | |
| 26 | 69.72% | 0.0 | 0.1394 | 1.02 |
Shake Shack Ownership Allocation
The majority of Shake Shack outstanding shares are owned by institutional holders. These institutional investors are usually referred to as non-private investors looking to take positions in Shake Shack to benefit from reduced commissions. Consequently, institutions are subject to a different set of regulations than regular investors in Shake Shack. Please pay attention to any change in the institutional holdings of Shake Shack as this could imply that something significant has changed or is about to change at the company. On April 5, 2021, Representative Ashley Hinson Arenholz of US Congress acquired under $15k worth of Shake Shack's common stock.Shake Shack Profitability Analysis
The company reported the previous year's revenue of 1.25 B. Net Income was 10.21 M with profit before overhead, payroll, taxes, and interest of 549.63 M.About Shake Shack Valuation
We use absolute and relative valuation methodologies to arrive at the intrinsic value of Shake Shack. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Shake Shack based exclusively on its fundamental and basic technical indicators. By analyzing Shake Shack's financials, quarterly and monthly indicators, and their related drivers, we attempt to find the most accurate representation of Shake Shack's intrinsic value. As compared to an absolute model, our relative valuation model uses a comparative analysis of Shake Shack. We calculate exposure to Shake Shack's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Shake Shack's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 660 M | 693 M | |
| Pretax Profit Margin | 0.02 | 0.02 | |
| Operating Profit Margin | 0.01 | 0.01 | |
| Net Profit Margin | 0.02 | 0.01 | |
| Gross Profit Margin | 0.51 | 0.50 |
Shake Shack Growth Indicators
Investing in growth stocks can be very risky. If the company such as Shake Shack 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 Outstanding | 44.2 M | |
| Quarterly Earnings Growth Y O Y | 0.783 | |
| Forward Price Earnings | 59.5238 |
Shake Shack Current Valuation Indicators
Shake Shack's valuation analysis is 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 Shake Shack'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 Shake Shack, 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 Shake Shack'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 Shake Shack's worth.When determining whether Shake Shack is a good investment, qualitative aspects like company management, corporate governance, and ethical practices play a significant role. A comparison with peer companies also provides context and helps to understand if Shake Stock is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about Shake Shack Stock. Highlighted below are key reports to facilitate an investment decision about Shake Shack Stock: Check out World Market Map to better understand how to build diversified portfolios, which includes a position in Shake Shack. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in nation. For more information on how to buy Shake Stock please use our How to buy in Shake Stock guide.You can also try the Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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. Comprehensive Shake Shack assessment requires weighing all these inputs, though not all factors influence outcomes equally.
Quarterly Earnings Growth 0.783 | Earnings Share 1.02 | Revenue Per Share | Quarterly Revenue Growth 0.159 | Return On Assets |
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. Meanwhile, Shake Shack's quoted price indicates the marketplace figure where supply meets demand through bilateral consent.