ARCO Valuation
Arcos Dorados Holdings Inc
$
7.630
- Overview
- Forecast
- Valuation
- Earnings
ARCO Relative Valuation
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. If the market price exceeds this fair value range, ARCO is overvalued; if below, it's undervalued.
Historical Valuation
Arcos Dorados Holdings Inc (ARCO) is now in the Undervalued zone, suggesting that its current forward PS ratio of 0.30 is considered Undervalued compared with the five-year average of 10.77. The fair price of Arcos Dorados Holdings Inc (ARCO) is between 13.48 to 16.07 according to relative valuation methord. Compared to the current price of 7.63 USD , Arcos Dorados Holdings Inc is Undervalued By 43.39%.
Relative Value
Fair Zone
13.48-16.07
Current Price：7.63
43.39%
Undervalued
10.83
PE
1Y
3Y
5Y
Trailing
Forward
6.35
EV/EBITDA
Arcos Dorados Holdings Inc. (ARCO) has a current EV/EBITDA of 6.35. The 5-year average EV/EBITDA is 8.40. The thresholds are as follows: Strongly Undervalued below 3.51, Undervalued between 3.51 and 5.96, Fairly Valued between 10.84 and 5.96, Overvalued between 10.84 and 13.29, and Strongly Overvalued above 13.29. The current Forward EV/EBITDA of 6.35 falls within the Historic Trend Line -Fairly Valued range.
11.32
EV/EBIT
Arcos Dorados Holdings Inc. (ARCO) has a current EV/EBIT of 11.32. The 5-year average EV/EBIT is 9.30. The thresholds are as follows: Strongly Undervalued below -62.72, Undervalued between -62.72 and -26.71, Fairly Valued between 45.30 and -26.71, Overvalued between 45.30 and 81.31, and Strongly Overvalued above 81.31. The current Forward EV/EBIT of 11.32 falls within the Historic Trend Line -Fairly Valued range.
0.30
PS
Arcos Dorados Holdings Inc. (ARCO) has a current PS of 0.30. The 5-year average PS is 0.43. The thresholds are as follows: Strongly Undervalued below 0.30, Undervalued between 0.30 and 0.36, Fairly Valued between 0.49 and 0.36, Overvalued between 0.49 and 0.55, and Strongly Overvalued above 0.55. The current Forward PS of 0.30 falls within the Undervalued range.
4.60
P/OCF
Arcos Dorados Holdings Inc. (ARCO) has a current P/OCF of 4.60. The 5-year average P/OCF is 6.55. The thresholds are as follows: Strongly Undervalued below -11.09, Undervalued between -11.09 and -2.27, Fairly Valued between 15.38 and -2.27, Overvalued between 15.38 and 24.20, and Strongly Overvalued above 24.20. The current Forward P/OCF of 4.60 falls within the Historic Trend Line -Fairly Valued range.
25.46
P/FCF
Arcos Dorados Holdings Inc. (ARCO) has a current P/FCF of 25.46. The 5-year average P/FCF is 39.81. The thresholds are as follows: Strongly Undervalued below -126.06, Undervalued between -126.06 and -43.13, Fairly Valued between 122.74 and -43.13, Overvalued between 122.74 and 205.67, and Strongly Overvalued above 205.67. The current Forward P/FCF of 25.46 falls within the Historic Trend Line -Fairly Valued range.
Arcos Dorados Holdings Inc (ARCO) has a current Price-to-Book (P/B) ratio of 2.84. Compared to its 3-year average P/B ratio of 4.69 , the current P/B ratio is approximately -39.36% higher. Relative to its 5-year average P/B ratio of 5.34, the current P/B ratio is about -46.81% higher. Arcos Dorados Holdings Inc (ARCO) has a Forward Free Cash Flow (FCF) yield of approximately -3.58%. Compared to its 3-year average FCF yield of 1.83%, the current FCF yield is approximately -296.13% lower. Relative to its 5-year average FCF yield of 1.84% , the current FCF yield is about -294.85% lower.
2.84
P/B
Median3y
4.69
Median5y
5.34
-3.58
FCF Yield
Median3y
1.83
Median5y
1.84
Competitors Valuation Multiple
The average P/S ratio for ARCO's competitors is 1.06, providing a benchmark for relative valuation. Arcos Dorados Holdings Inc Corp (ARCO) exhibits a P/S ratio of 0.30, which is -71.51% above the industry average. Given its robust revenue growth of -0.44%, this premium appears unsustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
ARCO.N
Arcos Dorados Holdings Inc
0.30
Average P/S: 1.06
-0.44%
1.61B
PZZA.O
Papa John's International Inc
0.71
4.19%
1.56B
CBRL.O
Cracker Barrel Old Country Store Inc
0.36
0.49%
1.37B
CNNE.N
Cannae Holdings Inc
2.69
-6.61%
1.02B
SG.N
Sweetgreen Inc
1.47
0.51%
1.14B
FWRG.O
First Watch Restaurant Group Inc
0.82
19.08%
1.09B
Performance Decomposition
1Y
3Y
5Y
Market capitalization of ARCO decreased by 11.31% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 7.80 to 10.91.
The secondary factor is the Revenue Growth, contributed -0.44%to the performance.
Overall, the performance of ARCO in the past 1 year is driven by P/E Change. Which is more unsustainable.
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FAQ
Is Arcos Dorados Holdings Inc (ARCO) currently overvalued or undervalued?
Arcos Dorados Holdings Inc (ARCO) is now in the Undervalued zone, suggesting that its current forward PS ratio of 0.30 is considered Undervalued compared with the five-year average of 10.77. The fair price of Arcos Dorados Holdings Inc (ARCO) is between 13.48 to 16.07 according to relative valuation methord. Compared to the current price of 7.63 USD , Arcos Dorados Holdings Inc is Undervalued By 43.39% .
What is Arcos Dorados Holdings Inc (ARCO) fair value?
How does ARCO's valuation metrics compare to the industry average?
What is the current P/B ratio for Arcos Dorados Holdings Inc (ARCO) as of Aug 14 2025?
What is the current FCF Yield for Arcos Dorados Holdings Inc (ARCO) as of Aug 14 2025?
What is the current Forward P/E ratio for Arcos Dorados Holdings Inc (ARCO) as of Aug 14 2025?