Aramark Valuation

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

Valuation Score

1/6

Valuation Score 1/6

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 ARMK * when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: ARMK * (MX$716.81) is trading below our estimate of fair value (MX$805.87)

Significantly Below Fair Value: ARMK * 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 ARMK *?

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

The above table shows the Price to Earnings ratio for ARMK *. This is calculated by dividing ARMK *'s market cap by their current earnings.
What is ARMK *'s PE Ratio?
PE Ratio	37.4x
Earnings	US$262.52m
Market Cap	US$9.81b

ARMK * 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	0.8x
Enterprise Value/EBITDA	12.8x
PEG Ratio	1.4x

Price to Earnings Ratio vs Peers

How does ARMK *'s PE Ratio compare to its peers?

The above table shows the PE ratio for ARMK * 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	23.4x
ALSEA * Alsea. de	13.5x	23.2%	Mex$38.8b
CMR B CMR. de	12.8x	n/a	Mex$671.9m
RLH A RLH Properties. de	30.9x	n/a	Mex$18.4b
7550 Zensho Holdings	36.4x	17.6%	JP¥1.3t
ARMK * Aramark	37.4x	27.0%	Mex$9.8b

Price-To-Earnings vs Peers: ARMK * is expensive based on its Price-To-Earnings Ratio (37.4x) compared to the peer average (23.4x).

Price to Earnings Ratio vs Industry

How does ARMK *'s PE Ratio compare vs other companies in the South American Hospitality Industry?

3 Companies	Price / Earnings	Estimated Growth	Market Cap

3 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: ARMK * is expensive based on its Price-To-Earnings Ratio (37.4x) compared to the South American Hospitality industry average (17.2x).

Price to Earnings Ratio vs Fair Ratio

What is ARMK *'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.

ARMK * PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	37.4x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate ARMK *'s Price-To-Earnings Fair Ratio for valuation analysis.

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.