We’ve recently updated our valuation analysis.

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

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

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/Revenue1.2x
Enterprise Value/EBITDA16.8x
PEG Ratio1.8x

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.
CompanyPEEstimated GrowthMarket Cap
Peer Average26x
DPZ Domino's Pizza
28.7x9.5%US$12.8b
DRI Darden Restaurants
20x5.4%US$18.0b
YUMC Yum China Holdings
30.1x22.8%US$25.6b
TXRH Texas Roadhouse
25.2x12.6%US$6.5b
ARMK Aramark
59.1x32.1%US$11.5b

Price-To-Earnings vs Peers: ARMK is expensive based on its Price-To-Earnings Ratio (59.1x) compared to the peer average (26x).


Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a25.5%
n/an/an/a

Price-To-Earnings vs Industry: ARMK is expensive based on its Price-To-Earnings Ratio (59.1x) compared to the US Hospitality industry average (19.2x)


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 Ratio59.1x
Fair PE Ratio37.1x

Price-To-Earnings vs Fair Ratio: ARMK is expensive based on its Price-To-Earnings Ratio (59.1x) compared to the estimated Fair Price-To-Earnings Ratio (37.1x).


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 ($44.46) is trading below our estimate of fair value ($45.77)

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


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 ARMK forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$44.46
US$45.61
+2.6%
11.0%US$55.00US$36.00n/a14
Jan ’24US$41.34
US$44.00
+6.4%
10.5%US$51.00US$36.00n/a15
Dec ’23US$41.90
US$43.53
+3.9%
10.5%US$51.00US$34.00n/a15
Nov ’23US$36.34
US$41.47
+14.1%
12.4%US$53.00US$34.00n/a15
Oct ’23US$31.20
US$42.13
+35.0%
11.2%US$53.00US$34.00n/a15
Sep ’23US$35.41
US$41.63
+17.6%
11.0%US$53.00US$34.00n/a15
Aug ’23US$33.77
US$40.90
+21.1%
12.2%US$53.00US$34.00n/a15
Jul ’23US$30.91
US$41.32
+33.7%
10.9%US$53.00US$34.00n/a17
Jun ’23US$34.04
US$41.38
+21.6%
10.8%US$53.00US$34.00n/a17
May ’23US$36.25
US$42.24
+16.5%
10.3%US$50.00US$34.00n/a17
Apr ’23US$37.76
US$42.24
+11.9%
10.3%US$50.00US$34.00n/a17
Mar ’23US$35.68
US$42.67
+19.6%
10.2%US$50.00US$34.00n/a15
Feb ’23US$34.56
US$42.33
+22.5%
11.2%US$50.00US$32.00n/a15
Jan ’23US$36.85
US$42.47
+15.2%
10.8%US$50.00US$32.00US$41.3415
Dec ’22US$32.02
US$42.33
+32.2%
11.2%US$50.00US$32.00US$41.9015
Nov ’22US$37.37
US$41.31
+10.5%
13.1%US$50.00US$32.00US$36.3416
Oct ’22US$35.78
US$40.75
+13.9%
13.3%US$50.00US$32.00US$31.2016
Sep ’22US$35.24
US$40.79
+15.7%
13.0%US$50.00US$34.00US$35.4114
Aug ’22US$35.13
US$41.64
+18.5%
11.4%US$50.00US$34.00US$33.7714
Jul ’22US$37.03
US$41.64
+12.5%
11.4%US$50.00US$34.00US$30.9114
Jun ’22US$37.23
US$41.21
+10.7%
11.6%US$48.00US$33.00US$34.0414
May ’22US$38.87
US$40.50
+4.2%
11.4%US$48.00US$33.00US$36.2514
Apr ’22US$38.25
US$40.29
+5.3%
12.0%US$48.00US$33.00US$37.7614
Mar ’22US$38.60
US$39.86
+3.3%
11.0%US$48.00US$33.00US$35.6814
Feb ’22US$34.92
US$38.07
+9.0%
14.6%US$48.00US$24.00US$34.5614
Jan ’22US$38.48
US$36.67
-4.7%
13.9%US$45.00US$24.00US$36.8515

Analyst Forecast: Target price is less than 20% higher than the current share price.


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