Shake Shack Inc.

NYSE:SHAK Stock Report

Market Cap: US$5.2b

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

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

Below Fair Value: SHAK ($123.01) is trading above our estimate of fair value ($111.12)

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

Key Valuation Metric

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

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

The above table shows the Price to Sales ratio for SHAK. This is calculated by dividing SHAK's market cap by their current revenue.
What is SHAK's PS Ratio?
PS Ratio4.1x
SalesUS$1.21b
Market CapUS$5.23b

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.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average2.8x
SG Sweetgreen
7.5x15.2%US$5.0b
EAT Brinker International
1.2x4.1%US$5.6b
WEN Wendy's
1.7x3.2%US$3.7b
ARMK Aramark
0.6x5.9%US$10.8b
SHAK Shake Shack
4.1x12.4%US$5.2b

Price-To-Sales vs Peers: SHAK is expensive based on its Price-To-Sales Ratio (4.1x) compared to the peer average (2.8x).

Price to Sales Ratio vs Industry

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

30 CompaniesPrice / SalesEstimated GrowthMarket Cap
BLMN Bloomin' Brands
0.2x-2.7%US$1.12b
BALY Bally's
0.3x2.2%US$721.02m
TAST Carrols Restaurant Group
0.3x2.9%US$478.64m
GENK GEN Restaurant Group
0.2x18.5%US$254.86m
SHAK 4.1xIndustry Avg. 1.6xNo. of Companies30PS01.22.43.64.86+
30 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: SHAK is expensive based on its Price-To-Sales Ratio (4.1x) compared to the US Hospitality industry average (1.6x).

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 Ratio4.1x
Fair PS Ratio1.9x

Price-To-Sales vs Fair Ratio: SHAK is expensive based on its Price-To-Sales Ratio (4.1x) compared to the estimated Fair Price-To-Sales Ratio (1.9x).

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$123.01
US$131.14
+6.6%
9.8%US$160.00US$102.00n/a22
Nov ’25US$124.10
US$128.50
+3.5%
10.7%US$160.00US$100.00n/a22
Oct ’25US$101.73
US$112.64
+10.7%
9.2%US$130.00US$95.00n/a22
Sep ’25US$99.41
US$112.77
+13.4%
9.1%US$130.00US$95.00n/a22
Aug ’25US$102.41
US$110.77
+8.2%
10.1%US$130.00US$90.00n/a22
Jul ’25US$86.57
US$113.67
+31.3%
7.0%US$125.00US$95.00n/a21
Jun ’25US$94.89
US$113.65
+19.8%
7.3%US$125.00US$95.00n/a20
May ’25US$103.33
US$106.48
+3.0%
8.9%US$125.00US$90.00n/a21
Apr ’25US$106.45
US$104.25
-2.1%
10.2%US$125.00US$88.00n/a20
Mar ’25US$107.25
US$99.00
-7.7%
11.3%US$115.00US$65.00n/a20
Feb ’25US$78.75
US$73.95
-6.1%
11.9%US$90.00US$60.00n/a19
Jan ’25US$74.12
US$69.47
-6.3%
12.5%US$85.00US$56.00n/a19
Dec ’24US$61.66
US$66.67
+8.1%
13.4%US$85.00US$56.00n/a18
Nov ’24US$57.27
US$71.37
+24.6%
15.0%US$95.00US$56.00US$124.1019
Oct ’24US$58.07
US$77.76
+33.9%
9.2%US$95.00US$68.00US$101.7317
Sep ’24US$70.07
US$77.31
+10.3%
9.3%US$95.00US$68.00US$99.4116
Aug ’24US$77.16
US$72.56
-6.0%
11.9%US$90.00US$60.00US$102.4116
Jul ’24US$77.72
US$69.63
-10.4%
12.3%US$85.00US$59.00US$86.5716
Jun ’24US$67.54
US$67.87
+0.5%
9.7%US$82.00US$59.00US$94.8915
May ’24US$54.74
US$57.88
+5.7%
11.4%US$70.00US$48.00US$103.3316
Apr ’24US$55.49
US$58.20
+4.9%
11.3%US$70.00US$47.00US$106.4515
Mar ’24US$57.07
US$57.53
+0.8%
11.3%US$70.00US$47.00US$107.2517
Feb ’24US$57.87
US$53.76
-7.1%
10.0%US$63.00US$47.00US$78.7517
Jan ’24US$41.53
US$53.72
+29.4%
12.0%US$69.00US$45.00US$74.1218
Dec ’23US$52.07
US$54.26
+4.2%
11.5%US$69.00US$45.00US$61.6619
Nov ’23US$54.24
US$55.16
+1.7%
13.3%US$69.00US$44.00US$57.2719

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

Discover undervalued companies

7D

1Y

7D

1Y

7D

1Y