Shake Shack Valuation
| SHAK Stock | USD 122.14 2.12 1.77% |
At this time, the company appears to be undervalued. Shake Shack has a current Real Value of $130.23 per share. The regular price of the company is $122.14. Our model measures the value of Shake Shack from inspecting the company fundamentals such as Operating Margin of 0.04 %, return on equity of 0.019, and Shares Outstanding of 40.03 M as well as reviewing its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Shake Shack's valuation include:
Price Book 10.4022 | Enterprise Value | Enterprise Value Ebitda 48.4735 | Price Sales 4.1625 | Forward PE 93.4579 |
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 122.14, 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 122.14 | Real 130.23 | Target 135.32 | Hype 123.17 | Naive 124.77 |
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 Valuation Trend
Knowing Shake Shack's actual value is paramount for traders when making sound investment determinations. Using both Shake Shack's enterprise value as well as its market capitalization is the best way to estimate the value of the company and is usually enough for investors to make market timing decisions.
Shake Revenue by Product
Shake Shack Total Value Analysis
Shake Shack is at this time forecasted to have valuation of 5.24 B with market capitalization of 5.04 B, debt of 771.33 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 |
5.24 B | 5.04 B | 771.33 M | 357.96 M |
Shake Shack Investor Information
About 100.0% 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 may be sliding down financialy. It has an above-average chance of going through some form of financial crunch next quarter.| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
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| Operating Profit Margin | 0.0388 | 0.0305 |
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| Total Cash From Operating Activities | 159.6 M | 152 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 67.72 percent. This suggests that the Company is making $0.68 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 Ownership Allocation
Shake Shack shows a total of 40.03 Million outstanding shares. 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. Also note that roughly one million nine hundred fifty-three thousand three hundred thirty-seven invesors are currently shorting Shake Shack expressing very little confidence in its future performance.Shake Shack Profitability Analysis
The company reported the previous year's revenue of 1.09 B. Net Income was 20.99 M with profit before overhead, payroll, taxes, and interest of 456.09 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 | 458.2 M | 481.1 M | |
| Pretax Profit Margin | 0.03 | 0.03 | |
| Operating Profit Margin | 0.03 | 0.04 | |
| Net Profit Margin | 0.02 | 0.02 | |
| Gross Profit Margin | 0.53 | 0.48 |
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 | 43.9 M | |
| Quarterly Earnings Growth Y O Y | 0.397 | |
| Forward Price Earnings | 93.4579 |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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 | Quarterly Revenue Growth 0.147 | 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. 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.