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 ($131.53) is trading above our estimate of fair value ($70.93)

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?

Other financial metrics that can be useful for relative valuation.

CAVA 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/Revenue18.1x
Enterprise Value/EBITDA174.1x
PEG Ratio15.4x

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 Average5.1x
TXRH Texas Roadhouse
2.5x9.3%US$12.7b
DRI Darden Restaurants
1.6x5.3%US$18.8b
YUMC Yum China Holdings
1.6x8.0%US$16.8b
WING Wingstop
14.7x16.8%US$8.4b
CAVA CAVA Group
17.8x17.3%US$15.3b

Price-To-Sales vs Peers: CAVA is expensive based on its Price-To-Sales Ratio (17.8x) compared to the peer average (5.1x).


Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a23.0%
n/an/an/a
No. of CompaniesPS048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a23.0%
n/an/an/a
No more companies

Price-To-Sales vs Industry: CAVA is expensive based on its Price-To-Sales Ratio (17.8x) compared to the US Hospitality industry average (1.5x).


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 Ratio17.8x
Fair PS Ratio3.1x

Price-To-Sales vs Fair Ratio: CAVA is expensive based on its Price-To-Sales Ratio (17.8x) compared to the estimated Fair Price-To-Sales Ratio (3.1x).


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$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 lower than the current share price.


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