Historical Valuation
Arcos Dorados Holdings Inc (ARCO) is now in the Undervalued zone, suggesting that its current forward PE ratio of 10.71 is considered Undervalued compared with the five-year average of 14.89. The fair price of Arcos Dorados Holdings Inc (ARCO) is between 12.49 to 21.37 according to relative valuation methord. Compared to the current price of 7.91 USD , Arcos Dorados Holdings Inc is Undervalued By 36.71%.
Relative Value
Fair Zone
12.49-21.37
Current Price：7.91
36.71%
Undervalued
P/E
EV/EBITDA
EV/EBIT
P/S
P/OCF
P/FCF
1Y
3Y
5Y
Trailing
Forward
Arcos Dorados Holdings Inc (ARCO) has a current Price-to-Book (P/B) ratio of 2.06. Compared to its 3-year average P/B ratio of 4.07 , the current P/B ratio is approximately -49.34% higher. Relative to its 5-year average P/B ratio of 5.05, the current P/B ratio is about -59.18% higher. Arcos Dorados Holdings Inc (ARCO) has a Forward Free Cash Flow (FCF) yield of approximately 0.17%. Compared to its 3-year average FCF yield of 0.17%, the current FCF yield is approximately 1.11% lower. Relative to its 5-year average FCF yield of 3.00% , the current FCF yield is about -94.38% lower.
P/B
Median3y
4.07
Median5y
5.05
FCF Yield
Median3y
0.17
Median5y
3.00
Competitors Valuation Multiple
AI Analysis for ARCO
The average P/S ratio for ARCO competitors is 0.87, providing a benchmark for relative valuation. Arcos Dorados Holdings Inc Corp (ARCO.N) exhibits a P/S ratio of 0.31, which is -64.4% above the industry average. Given its robust revenue growth of 5.22%, this premium appears unsustainable.
Performance Decomposition
AI Analysis for ARCO
1Y
3Y
5Y
Market capitalization of ARCO increased by 0.00% over the past 1 year. The primary factor behind the change was an decrease in Unknown from 0.00 to 0.00.
The secondary factor is the Unknown, contributed 0.00%to the performance.
Overall, the performance of ARCO in the past 1 year is driven by Unknown.
People Also Watch
Frequently Asked Questions
Is ARCO currently overvalued or undervalued?
Arcos Dorados Holdings Inc (ARCO) is now in the Undervalued zone, suggesting that its current forward PE ratio of 10.71 is considered Undervalued compared with the five-year average of 14.89. The fair price of Arcos Dorados Holdings Inc (ARCO) is between 12.49 to 21.37 according to relative valuation methord. Compared to the current price of 7.91 USD , Arcos Dorados Holdings Inc is Undervalued By 36.71% .
What is Arcos Dorados Holdings Inc (ARCO) fair value?
ARCO's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average , adjusted by weights. The fair price of Arcos Dorados Holdings Inc (ARCO) is between 12.49 to 21.37 according to relative valuation methord.
How does ARCO's valuation metrics compare to the industry average?
The average P/S ratio for ARCO's competitors is 0.87, providing a benchmark for relative valuation. Arcos Dorados Holdings Inc Corp (ARCO) exhibits a P/S ratio of 0.31, which is -64.40% above the industry average. Given its robust revenue growth of 5.22%, this premium appears unsustainable.
What is the current P/B ratio for Arcos Dorados Holdings Inc (ARCO) as of Jan 10 2026?
As of Jan 10 2026, Arcos Dorados Holdings Inc (ARCO) has a P/B ratio of 2.06. This indicates that the market values ARCO at 2.06 times its book value.
What is the current FCF Yield for Arcos Dorados Holdings Inc (ARCO) as of Jan 10 2026?
As of Jan 10 2026, Arcos Dorados Holdings Inc (ARCO) has a FCF Yield of 0.17%. This means that for every dollar of Arcos Dorados Holdings Inc’s market capitalization, the company generates 0.17 cents in free cash flow.
What is the current Forward P/E ratio for Arcos Dorados Holdings Inc (ARCO) as of Jan 10 2026?
As of Jan 10 2026, Arcos Dorados Holdings Inc (ARCO) has a Forward P/E ratio of 10.71. This means the market is willing to pay $10.71 for every dollar of Arcos Dorados Holdings Inc’s expected earnings over the next 12 months.
What is the current Forward P/S ratio for Arcos Dorados Holdings Inc (ARCO) as of Jan 10 2026?
As of Jan 10 2026, Arcos Dorados Holdings Inc (ARCO) has a Forward P/S ratio of 0.31. This means the market is valuing ARCO at $0.31 for every dollar of expected revenue over the next 12 months.