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Ruth's Hospitality Group Valuation

Is R6R undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

Below Fair Value
Significantly Below Fair Value
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of R6R when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: R6R (€19.8) is trading above our estimate of fair value (€9.59)

Significantly Below Fair Value: R6R is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for R6R?

Key metric: As R6R is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for R6R. This is calculated by dividing R6R's market cap by their current earnings.
What is R6R's PE Ratio?
PE Ratio	16.9x
Earnings	US$39.55m
Market Cap	US$670.33m

R6R key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	1.8x
Enterprise Value/EBITDA	11.7x
PEG Ratio	-8.9x

Price to Earnings Ratio vs Peers

How does R6R's PE Ratio compare to its peers?

The above table shows the PE ratio for R6R vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PE	Estimated Growth	Market Cap
Peer Average	25.6x
TIMA ZEAL Network	20.1x	-5.0%	€944.3m
3085 Arcland Service Holdings	34.7x	9.7%	JP¥100.4b
BJRI BJ's Restaurants	28.3x	9.3%	US$806.3m
DENN Denny's	19.3x	30.9%	US$320.8m
R6R Ruth's Hospitality Group	16.9x	-1.9%	€670.3m

Price-To-Earnings vs Peers: R6R is good value based on its Price-To-Earnings Ratio (16.9x) compared to the peer average (84.2x).

Price to Earnings Ratio vs Industry

How does R6R's PE Ratio compare vs other companies in the European Hospitality Industry?

10 Companies	Price / Earnings	Estimated Growth	Market Cap

10 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: R6R is good value based on its Price-To-Earnings Ratio (16.9x) compared to the European Hospitality industry average (21.8x)

Price to Earnings Ratio vs Fair Ratio

What is R6R's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

R6R PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	16.9x
Fair PE Ratio	18.3x

Price-To-Earnings vs Fair Ratio: R6R is good value based on its Price-To-Earnings Ratio (16.9x) compared to the estimated Fair Price-To-Earnings Ratio (18.3x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.