We’ve recently updated our valuation analysis.

Shake Shack Valuation

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

Valuation Score

0/6

Valuation Score 0/6

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales 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 SHAK?

Other financial metrics that can be useful for relative valuation.

SHAK 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/Revenue3.1x
Enterprise Value/EBITDA61x
PEG Ration/a

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for SHAK vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPSEstimated GrowthMarket Cap
Peer Average1x
DNUT Krispy Kreme
1.4x8.5%US$2.1b
PLAY Dave & Buster's Entertainment
1.2x8.0%US$2.2b
CAKE Cheesecake Factory
0.6x5.5%US$2.0b
CBRL Cracker Barrel Old Country Store
0.8x2.4%US$2.6b
SHAK Shake Shack
2.6x16.8%US$2.5b

Price-To-Sales vs Peers: SHAK is expensive based on its Price-To-Sales Ratio (2.6x) compared to the peer average (1x).


Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a27.0%
n/an/an/a

Price-To-Sales vs Industry: SHAK is expensive based on its Price-To-Sales Ratio (2.6x) compared to the US Hospitality industry average (1.8x)


Price to Sales Ratio vs Fair Ratio

What is SHAK'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.

SHAK PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio2.6x
Fair PS Ratio1.7x

Price-To-Sales vs Fair Ratio: SHAK is expensive based on its Price-To-Sales Ratio (2.6x) compared to the estimated Fair Price-To-Sales Ratio (1.7x).


Share Price vs Fair Value

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

Below Fair Value: Insufficient data to calculate SHAK's fair value for valuation analysis.

Significantly Below Fair Value: Insufficient data to calculate SHAK's fair value for valuation analysis.


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 SHAK forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$58.29
US$53.76
-7.8%
10.0%US$63.00US$47.00n/a17
Jan ’24US$41.53
US$53.72
+29.4%
12.0%US$69.00US$45.00n/a18
Dec ’23US$52.07
US$54.26
+4.2%
11.5%US$69.00US$45.00n/a19
Nov ’23US$54.24
US$55.16
+1.7%
13.3%US$69.00US$44.00n/a19
Oct ’23US$44.98
US$55.95
+24.4%
12.9%US$69.00US$44.00n/a19
Sep ’23US$47.19
US$55.95
+18.6%
12.9%US$69.00US$44.00n/a19
Aug ’23US$49.49
US$62.21
+25.7%
19.3%US$86.00US$45.00n/a19
Jul ’23US$40.79
US$66.21
+62.3%
14.9%US$86.00US$45.00n/a19
Jun ’23US$47.07
US$66.79
+41.9%
13.4%US$86.00US$45.00n/a19
May ’23US$57.83
US$76.50
+32.3%
13.1%US$102.00US$64.00n/a18
Apr ’23US$69.33
US$77.44
+11.7%
12.7%US$102.00US$64.00n/a18
Mar ’23US$75.11
US$78.39
+4.4%
14.1%US$102.00US$64.00n/a18
Feb ’23US$66.70
US$86.89
+30.3%
14.8%US$118.00US$65.00US$57.8718
Jan ’23US$72.16
US$89.06
+23.4%
12.0%US$118.00US$75.00US$41.5318
Dec ’22US$70.40
US$90.71
+28.8%
11.2%US$118.00US$75.00US$52.0717
Nov ’22US$74.41
US$93.81
+26.1%
12.1%US$118.00US$80.00US$54.2416
Oct ’22US$81.44
US$100.00
+22.8%
13.3%US$131.00US$80.00US$44.9815
Sep ’22US$87.81
US$100.00
+13.9%
13.3%US$131.00US$80.00US$47.1915
Aug ’22US$100.54
US$102.07
+1.5%
13.2%US$131.00US$80.00US$49.4915
Jul ’22US$103.89
US$102.07
-1.8%
13.2%US$131.00US$80.00US$40.7915
Jun ’22US$90.92
US$102.07
+12.3%
13.2%US$131.00US$80.00US$47.0715
May ’22US$108.75
US$108.00
-0.7%
13.1%US$135.00US$80.00US$57.8315
Apr ’22US$113.45
US$111.06
-2.1%
15.0%US$150.00US$90.00US$69.3316
Mar ’22US$117.53
US$106.88
-9.1%
19.7%US$150.00US$70.00US$75.1116
Feb ’22US$112.35
US$93.63
-16.7%
16.7%US$122.00US$70.00US$66.7016

Analyst Forecast: Target price is lower than the current share price.


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