El Pollo Loco Holdings Valuation
Is LOCO * undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score
3/6Valuation 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 LOCO * when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: LOCO * (MX$209.33) is trading above our estimate of fair value (MX$130.28)
Significantly Below Fair Value: LOCO * is trading above our estimate of fair value.
Key Valuation Metric
Which metric is best to use when looking at relative valuation for LOCO *?
Key metric: As LOCO * is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.
| What is LOCO *'s PE Ratio? | |
|---|---|
| PE Ratio | 14.8x |
| Earnings | US$23.60m |
| Market Cap | US$348.72m |
| Key Statistics | |
|---|---|
| Enterprise Value/Revenue | 1.3x |
| Enterprise Value/EBITDA | 12.4x |
| PEG Ratio | 1x |
Price to Earnings Ratio vs Peers
How does LOCO *'s PE Ratio compare to its peers?
| Company | Forward PE | Estimated Growth | Market Cap |
|---|---|---|---|
| Peer Average | 16x | ||
ALSEA * Alsea. de | 13.2x | 23.2% | Mex$38.2b |
CMR B CMR. de | 13.6x | n/a | Mex$714.9m |
AGUILAS CPO Ollamani | 6.2x | n/a | Mex$4.3b |
RLH A RLH Properties. de | 30.9x | n/a | Mex$18.4b |
LOCO * El Pollo Loco Holdings | 14.8x | 14.5% | Mex$348.7m |
Price-To-Earnings vs Peers: LOCO * is good value based on its Price-To-Earnings Ratio (14.8x) compared to the peer average (25.3x).
Price to Earnings Ratio vs Industry
How does LOCO *'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 | |
|---|---|---|---|
Price-To-Earnings vs Industry: LOCO * is good value based on its Price-To-Earnings Ratio (14.8x) compared to the South American Hospitality industry average (15.6x).
Price to Earnings Ratio vs Fair Ratio
What is LOCO *'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.
| Fair Ratio | |
|---|---|
| Current PE Ratio | 14.8x |
| Fair PE Ratio | 15x |
Price-To-Earnings vs Fair Ratio: LOCO * is good value based on its Price-To-Earnings Ratio (14.8x) compared to the estimated Fair Price-To-Earnings Ratio (15x).
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.