CAVA Group Valuation

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

Valuation Score

0/6

Valuation Score 0/6

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

Below Fair Value: CAVA ($143.52) is trading above our estimate of fair value ($100.37)

Significantly Below Fair Value: CAVA is trading above our estimate of fair value.


Key Valuation Metric

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

Key metric: As CAVA is barely profitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for CAVA. This is calculated by dividing CAVA's market cap by their current revenue.
What is CAVA's PS Ratio?
PS Ratio18x
SalesUS$913.49m
Market CapUS$16.33b

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for CAVA vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average2.4x
DRI Darden Restaurants
1.8x5.4%US$20.6b
TXRH Texas Roadhouse
2.7x9.3%US$13.5b
YUMC Yum China Holdings
1.5x8.0%US$18.1b
DPZ Domino's Pizza
3.5x6.0%US$16.2b
CAVA CAVA Group
18x18.6%US$16.3b

Price-To-Sales vs Peers: CAVA is expensive based on its Price-To-Sales Ratio (18x) compared to the peer average (2.4x).


Price to Sales Ratio vs Industry

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

29 CompaniesPrice / SalesEstimated GrowthMarket Cap
BLMN Bloomin' Brands
0.3x-2.7%US$1.20b
BALY Bally's
0.3x2.2%US$722.65m
TAST Carrols Restaurant Group
0.3x2.9%US$478.64m
CNTY Century Casinos
0.2x5.9%US$136.54m
CAVA 18.0xIndustry Avg. 1.7xNo. of Companies29PS01.22.43.64.86+
29 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: CAVA is expensive based on its Price-To-Sales Ratio (18x) compared to the US Hospitality industry average (1.6x).


Price to Sales Ratio vs Fair Ratio

What is CAVA'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.

CAVA PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio18x
Fair PS Ratio3.3x

Price-To-Sales vs Fair Ratio: CAVA is expensive based on its Price-To-Sales Ratio (18x) compared to the estimated Fair Price-To-Sales Ratio (3.3x).


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 CAVA forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$143.52
US$156.46
+9.0%
14.7%US$195.00US$110.00n/a13
Nov ’25US$131.53
US$122.33
-7.0%
13.5%US$155.00US$90.00n/a12
Oct ’25US$122.43
US$114.75
-6.3%
11.5%US$135.00US$90.00n/a12
Sep ’25US$114.04
US$111.55
-2.2%
9.9%US$125.00US$90.00n/a11
Aug ’25US$84.48
US$89.27
+5.7%
10.5%US$105.00US$72.00n/a11
Jul ’25US$95.27
US$86.73
-9.0%
8.2%US$95.00US$72.00n/a11
Jun ’25US$92.55
US$86.20
-6.9%
8.2%US$94.00US$72.00n/a10
May ’25US$67.45
US$65.49
-2.9%
9.6%US$74.00US$53.00n/a12
Apr ’25US$68.40
US$62.81
-8.2%
5.7%US$66.00US$53.00n/a11
Mar ’25US$58.30
US$61.40
+5.3%
8.7%US$66.00US$50.00n/a10
Feb ’25US$49.41
US$46.60
-5.7%
13.2%US$55.00US$35.00n/a10
Jan ’25US$42.98
US$45.40
+5.6%
13.2%US$55.00US$35.00n/a10
Dec ’24US$36.22
US$42.89
+18.4%
14.1%US$55.00US$35.00n/a9
Nov ’24US$31.95
US$43.56
+36.3%
15.3%US$55.00US$33.00US$131.539
Oct ’24US$30.63
US$49.63
+62.0%
11.5%US$58.00US$40.00US$122.438
Sep ’24US$43.82
US$51.00
+16.4%
9.3%US$58.00US$45.00US$114.047
Aug ’24US$56.99
US$45.86
-19.5%
5.9%US$50.00US$42.00US$84.487

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


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