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 Fair zone, suggesting that its current forward PE ratio of 12.08 is considered Fairly compared with the five-year average of 13.99. The fair price of Arcos Dorados Holdings Inc (ARCO) is between 4.21 to 16.61 according to relative valuation methord.
Relative Value
Fair Zone
4.21-16.61
Current Price：7.71
Fair
11.95
PE
1Y
3Y
5Y
Trailing
Forward
6.83
EV/EBITDA
Arcos Dorados Holdings Inc. (ARCO) has a current EV/EBITDA of 6.83. The 5-year average EV/EBITDA is 7.88. The thresholds are as follows: Strongly Undervalued below 4.21, Undervalued between 4.21 and 6.05, Fairly Valued between 9.72 and 6.05, Overvalued between 9.72 and 11.56, and Strongly Overvalued above 11.56. The current Forward EV/EBITDA of 6.83 falls within the Historic Trend Line -Fairly Valued range.
11.56
EV/EBIT
Arcos Dorados Holdings Inc. (ARCO) has a current EV/EBIT of 11.56. The 5-year average EV/EBIT is 13.44. The thresholds are as follows: Strongly Undervalued below 1.52, Undervalued between 1.52 and 7.48, Fairly Valued between 19.40 and 7.48, Overvalued between 19.40 and 25.35, and Strongly Overvalued above 25.35. The current Forward EV/EBIT of 11.56 falls within the Historic Trend Line -Fairly Valued range.
0.33
PS
Arcos Dorados Holdings Inc. (ARCO) has a current PS of 0.33. The 5-year average PS is 0.42. The thresholds are as follows: Strongly Undervalued below 0.28, Undervalued between 0.28 and 0.35, Fairly Valued between 0.49 and 0.35, Overvalued between 0.49 and 0.56, and Strongly Overvalued above 0.56. The current Forward PS of 0.33 falls within the Undervalued range.
4.01
P/OCF
Arcos Dorados Holdings Inc. (ARCO) has a current P/OCF of 4.01. The 5-year average P/OCF is 7.33. The thresholds are as follows: Strongly Undervalued below -0.69, Undervalued between -0.69 and 3.32, Fairly Valued between 11.34 and 3.32, Overvalued between 11.34 and 15.35, and Strongly Overvalued above 15.35. The current Forward P/OCF of 4.01 falls within the Historic Trend Line -Fairly Valued range.
16.70
P/FCF
Arcos Dorados Holdings Inc. (ARCO) has a current P/FCF of 16.70. The 5-year average P/FCF is 43.36. The thresholds are as follows: Strongly Undervalued below -120.26, Undervalued between -120.26 and -38.45, Fairly Valued between 125.18 and -38.45, Overvalued between 125.18 and 206.99, and Strongly Overvalued above 206.99. The current Forward P/FCF of 16.70 falls within the Historic Trend Line -Fairly Valued range.
Arcos Dorados Holdings Inc (ARCO) has a current Price-to-Book (P/B) ratio of 2.18. Compared to its 3-year average P/B ratio of 4.19 , the current P/B ratio is approximately -48.00% higher. Relative to its 5-year average P/B ratio of 5.12, the current P/B ratio is about -57.41% higher. Arcos Dorados Holdings Inc (ARCO) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 0.49%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 2.79% , the current FCF yield is about -100.00% lower.
2.16
P/B
Median3y
4.19
Median5y
5.12
0.16
FCF Yield
Median3y
0.49
Median5y
2.79
Competitors Valuation Multiple
The average P/S ratio for ARCO's competitors is , providing a benchmark for relative valuation. Arcos Dorados Holdings Inc Corp (ARCO) exhibits a P/S ratio of , which is NaN% above the industry average. Given its robust revenue growth of 5.22%, this premium appears unsustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of ARCO increased by 6.43% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 3.11 to 12.62.
The secondary factor is the Revenue Growth, contributed 5.22%to the performance.
Overall, the performance of ARCO in the past 1 year is driven by Margin Expansion. Which is more sustainable.
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FAQ
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