The Cheesecake Factory Incorporated

LSE:0A5B Stock Report

Market Cap: US$2.8b

Cheesecake Factory Valuation

Is 0A5B undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • 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 0A5B when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Discounted Cash Flow
Simply Wall St
US$60.20
Fair Value
12.2% undervalued intrinsic discount
18
Number of Analysts

Below Fair Value: 0A5B ($52.85) is trading below our estimate of fair value ($60.2)

Significantly Below Fair Value: 0A5B is trading below fair value, but not by a significant amount.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 0A5B?

Key metric: As 0A5B is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 0A5B. This is calculated by dividing 0A5B's market cap by their current earnings.
What is 0A5B's PE Ratio?
PE Ratio22.2x
EarningsUS$128.31m
Market CapUS$2.85b

Price to Earnings Ratio vs Peers

How does 0A5B's PE Ratio compare to its peers?

The above table shows the PE ratio for 0A5B vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average20.2x
ROO Deliveroo
41.6x50.6%UK£2.1b
GRG Greggs
15.4x4.0%UK£2.1b
DOM Domino's Pizza Group
14.8x5.8%UK£1.1b
MAB Mitchells & Butlers
9x8.6%UK£1.4b
0A5B Cheesecake Factory
22.2x17.5%US$2.8b

Price-To-Earnings vs Peers: 0A5B is expensive based on its Price-To-Earnings Ratio (22.2x) compared to the peer average (20.4x).

Price to Earnings Ratio vs Industry

How does 0A5B's PE Ratio compare vs other companies in the GB Hospitality Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
TAST Tasty
0.2x-82.7%US$1.55m
No more companies available in this PE range
0A5B 22.2xIndustry Avg. 15.8xNo. of Companies6PE01224364860+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 0A5B is expensive based on its Price-To-Earnings Ratio (22.2x) compared to the UK Hospitality industry average (15.8x).

Price to Earnings Ratio vs Fair Ratio

What is 0A5B'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.

0A5B PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio22.2x
Fair PE Ratio24x

Price-To-Earnings vs Fair Ratio: 0A5B is good value based on its Price-To-Earnings Ratio (22.2x) compared to the estimated Fair Price-To-Earnings Ratio (24x).

Analyst Price Targets

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

The above table shows the analyst 0A5B forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Currentn/a
US$52.89
0%
15.8%US$66.00US$37.00n/a18
Feb ’26US$56.05
US$51.44
-8.2%
14.2%US$65.00US$37.00n/a18
Jan ’26US$48.00
US$48.94
+2.0%
15.1%US$59.00US$36.00n/a16
Dec ’25US$50.62
US$47.56
-6.0%
13.5%US$59.00US$36.00n/a16
Nov ’25US$45.88
US$46.25
+0.8%
11.5%US$55.00US$36.00n/a16
Oct ’25US$40.97
US$40.69
-0.7%
13.4%US$50.00US$29.00n/a16
Sep ’25US$38.95
US$40.56
+4.1%
13.6%US$50.00US$29.00n/a16
Aug ’25US$36.76
US$40.69
+10.7%
13.5%US$50.00US$29.00n/a16
Jul ’25US$38.35
US$39.19
+2.2%
14.4%US$50.00US$29.00n/a16
Jun ’25US$38.51
US$39.19
+1.8%
14.4%US$50.00US$29.00n/a16
May ’25US$34.09
US$36.07
+5.8%
11.3%US$44.00US$28.00n/a15
Apr ’25US$36.23
US$35.71
-1.4%
9.8%US$40.00US$28.00n/a14
Mar ’25US$35.54
US$35.64
+0.3%
10.0%US$40.00US$28.00n/a14
Feb ’25US$35.52
US$34.73
-2.2%
10.2%US$40.00US$28.00US$56.0515
Jan ’25US$34.98
US$33.67
-3.8%
12.9%US$40.00US$26.00US$48.0015
Dec ’24US$32.89
US$32.60
-0.9%
10.7%US$40.00US$26.00US$50.6215
Nov ’24US$30.66
US$33.87
+10.4%
13.3%US$43.00US$28.00US$45.8815
Oct ’24US$30.62
US$36.23
+18.3%
11.0%US$43.00US$31.00US$40.9713
Sep ’24US$31.91
US$36.73
+15.1%
10.4%US$43.00US$31.00US$38.9513
Aug ’24US$36.19
US$36.15
-0.1%
12.8%US$47.00US$30.00US$36.7613
Jul ’24US$34.87
US$36.08
+3.5%
13.3%US$47.00US$30.00US$38.3512
Jun ’24US$31.56
US$36.36
+15.2%
13.5%US$47.00US$30.00US$38.5111
May ’24US$33.47
US$37.36
+11.6%
14.3%US$46.00US$30.00US$34.0911
Apr ’24US$35.46
US$38.50
+8.6%
12.8%US$46.00US$30.00US$36.2310
Mar ’24US$37.92
US$37.75
-0.5%
13.5%US$46.00US$30.00US$35.5412
Feb ’24US$39.46
US$35.00
-11.3%
11.0%US$40.00US$28.00US$35.5212
Analyst Price Target
Consensus Narrative from 18 Analysts
US$50.11
Fair Value
5.5% overvalued intrinsic discount
18
Number of Analysts

Analyst Forecast: Target price is lower than the current share price.

Discover undervalued companies

7D

1Y

7D

1Y

7D

1Y

Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/02/19 17:12
End of Day Share Price 2025/02/10 00:00
Earnings2024/10/01
Annual Earnings2024/01/02

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

The Cheesecake Factory Incorporated is covered by 50 analysts. 18 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
John StaszakArgus Research Company
David TarantinoBaird
Jeffrey BernsteinBarclays