FAT Brands Valuation

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

Valuation Score

5/6

Valuation Score 5/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

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

Below Fair Value: FAT ($5.32) is trading below our estimate of fair value ($9.57)

Significantly Below Fair Value: FAT is trading below fair value by more than 20%.


Key Valuation Metric

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

Key metric: As FAT is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for FAT. This is calculated by dividing FAT's market cap by their current revenue.
What is FAT's PS Ratio?
PS Ratio0.2x
SalesUS$606.01m
Market CapUS$90.51m

Price to Sales Ratio vs Peers

How does FAT's PS Ratio compare to its peers?

The above table shows the PS ratio for FAT vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average0.3x
STKS ONE Group Hospitality
0.2x35.5%US$105.8m
THCH TH International
0.8xn/aUS$159.6m
MHGU Meritage Hospitality Group
0.2xn/aUS$102.3m
0.2x7.0%US$134.0m
FAT FAT Brands
0.2x8.5%US$90.5m

Price-To-Sales vs Peers: FAT is good value based on its Price-To-Sales Ratio (0.2x) compared to the peer average (0.3x).


Price to Sales Ratio vs Industry

How does FAT's PS Ratio compare vs other companies in the US Hospitality Industry?

31 CompaniesPrice / SalesEstimated GrowthMarket Cap
Industry Avg.1.6x10.1%
FAT FAT Brands
0.2x8.5%US$90.51m
BLMN Bloomin' Brands
0.2x-2.7%US$1.12b
BALY Bally's
0.3x2.2%US$721.02m
FAT 0.2xIndustry Avg. 1.6xNo. of Companies31PS01.22.43.64.86+
31 CompaniesEstimated GrowthMarket Cap
Industry Avg.1.6x26.5%
FAT FAT Brands
0.2x25.7%US$90.51m
No more companies

Price-To-Sales vs Industry: FAT is good value based on its Price-To-Sales Ratio (0.2x) compared to the US Hospitality industry average (1.6x).


Price to Sales Ratio vs Fair Ratio

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

FAT PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.2x
Fair PS Ratio0.4x

Price-To-Sales vs Fair Ratio: FAT is good value based on its Price-To-Sales Ratio (0.2x) compared to the estimated Fair Price-To-Sales Ratio (0.4x).


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.


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