CAKE Relative Valuation
CAKE'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, CAKE is overvalued; if below, it's undervalued.
Historical Valuation
Cheesecake Factory Inc (CAKE) is now in the Undervalued zone, suggesting that its current forward PE ratio of 13.45 is considered Undervalued compared with the five-year average of 14.18. The fair price of Cheesecake Factory Inc (CAKE) is between 75.22 to 101.09 according to relative valuation methord. Compared to the current price of 55.65 USD , Cheesecake Factory Inc is Undervalued By 26.02%.
Relative Value
Fair Zone
75.22-101.09
Current Price：55.65
26.02%
Undervalued
13.45
PE
1Y
3Y
5Y
13.55
EV/EBITDA
Cheesecake Factory Inc. (CAKE) has a current EV/EBITDA of 13.55. The 5-year average EV/EBITDA is 14.29. The thresholds are as follows: Strongly Undervalued below 10.32, Undervalued between 10.32 and 12.31, Fairly Valued between 16.27 and 12.31, Overvalued between 16.27 and 18.25, and Strongly Overvalued above 18.25. The current Forward EV/EBITDA of 13.55 falls within the Historic Trend Line -Fairly Valued range.
20.25
EV/EBIT
Cheesecake Factory Inc. (CAKE) has a current EV/EBIT of 20.25. The 5-year average EV/EBIT is 22.93. The thresholds are as follows: Strongly Undervalued below 12.97, Undervalued between 12.97 and 17.95, Fairly Valued between 27.91 and 17.95, Overvalued between 27.91 and 32.88, and Strongly Overvalued above 32.88. The current Forward EV/EBIT of 20.25 falls within the Historic Trend Line -Fairly Valued range.
0.68
PS
Cheesecake Factory Inc. (CAKE) has a current PS of 0.68. The 5-year average PS is 0.61. The thresholds are as follows: Strongly Undervalued below 0.33, Undervalued between 0.33 and 0.47, Fairly Valued between 0.75 and 0.47, Overvalued between 0.75 and 0.88, and Strongly Overvalued above 0.88. The current Forward PS of 0.68 falls within the Historic Trend Line -Fairly Valued range.
8.28
P/OCF
Cheesecake Factory Inc. (CAKE) has a current P/OCF of 8.28. The 5-year average P/OCF is 7.69. The thresholds are as follows: Strongly Undervalued below 4.78, Undervalued between 4.78 and 6.24, Fairly Valued between 9.14 and 6.24, Overvalued between 9.14 and 10.59, and Strongly Overvalued above 10.59. The current Forward P/OCF of 8.28 falls within the Historic Trend Line -Fairly Valued range.
17.78
P/FCF
Cheesecake Factory Inc. (CAKE) has a current P/FCF of 17.78. The 5-year average P/FCF is 18.76. The thresholds are as follows: Strongly Undervalued below 7.98, Undervalued between 7.98 and 13.37, Fairly Valued between 24.15 and 13.37, Overvalued between 24.15 and 29.54, and Strongly Overvalued above 29.54. The current Forward P/FCF of 17.78 falls within the Historic Trend Line -Fairly Valued range.
Cheesecake Factory Inc (CAKE) has a current Price-to-Book (P/B) ratio of 6.19. Compared to its 3-year average P/B ratio of 5.98 , the current P/B ratio is approximately 3.48% higher. Relative to its 5-year average P/B ratio of 6.22, the current P/B ratio is about -0.54% higher. Cheesecake Factory Inc (CAKE) has a Forward Free Cash Flow (FCF) yield of approximately 6.06%. Compared to its 3-year average FCF yield of 3.80%, the current FCF yield is approximately 59.40% lower. Relative to its 5-year average FCF yield of 4.02% , the current FCF yield is about 50.88% lower.
6.19
P/B
Median3y
5.98
Median5y
6.22
6.06
FCF Yield
Median3y
3.80
Median5y
4.02
Competitors Valuation Multiple
The average P/S ratio for CAKE's competitors is 1.01, providing a benchmark for relative valuation. Cheesecake Factory Inc Corp (CAKE) exhibits a P/S ratio of 0.68, which is -32.27% above the industry average. Given its robust revenue growth of 4.82%, this premium appears unsustainable.
Performance Decomposition
1Y
3Y
5Y
Market capitalization of CAKE decreased by 0.36% over the past 1 year. The primary factor behind the change was an increase in Revenue Growth from 865.47M to 907.23M.
The secondary factor is the Margin Expansion, contributed 1.44%to the performance.
Overall, the performance of CAKE in the past 1 year is driven by Revenue Growth. Which is more sustainable.
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Frequently Asked Questions
Is Cheesecake Factory Inc (CAKE) currently overvalued or undervalued?
Cheesecake Factory Inc (CAKE) is now in the Undervalued zone, suggesting that its current forward PE ratio of 13.45 is considered Undervalued compared with the five-year average of 14.18. The fair price of Cheesecake Factory Inc (CAKE) is between 75.22 to 101.09 according to relative valuation methord. Compared to the current price of 55.65 USD , Cheesecake Factory Inc is Undervalued By 26.02% .
What is Cheesecake Factory Inc (CAKE) fair value?
CAKE'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 Cheesecake Factory Inc (CAKE) is between 75.22 to 101.09 according to relative valuation methord.
How does CAKE's valuation metrics compare to the industry average?
The average P/S ratio for CAKE's competitors is 1.01, providing a benchmark for relative valuation. Cheesecake Factory Inc Corp (CAKE) exhibits a P/S ratio of 0.68, which is -32.27% above the industry average. Given its robust revenue growth of 4.82%, this premium appears unsustainable.
What is the current P/B ratio for Cheesecake Factory Inc (CAKE) as of Jan 08 2026?
As of Jan 08 2026, Cheesecake Factory Inc (CAKE) has a P/B ratio of 6.19. This indicates that the market values CAKE at 6.19 times its book value.
What is the current FCF Yield for Cheesecake Factory Inc (CAKE) as of Jan 08 2026?
As of Jan 08 2026, Cheesecake Factory Inc (CAKE) has a FCF Yield of 6.06%. This means that for every dollar of Cheesecake Factory Inc’s market capitalization, the company generates 6.06 cents in free cash flow.
What is the current Forward P/E ratio for Cheesecake Factory Inc (CAKE) as of Jan 08 2026?
As of Jan 08 2026, Cheesecake Factory Inc (CAKE) has a Forward P/E ratio of 13.45. This means the market is willing to pay $13.45 for every dollar of Cheesecake Factory Inc’s expected earnings over the next 12 months.
What is the current Forward P/S ratio for Cheesecake Factory Inc (CAKE) as of Jan 08 2026?
As of Jan 08 2026, Cheesecake Factory Inc (CAKE) has a Forward P/S ratio of 0.68. This means the market is valuing CAKE at $0.68 for every dollar of expected revenue over the next 12 months.