CAKE Valuation

Cheesecake Factory Inc

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61.940

+0.32(0.519%)1D

Overview
Forecast
Valuation
Earnings

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 Fair zone, suggesting that its current forward PE ratio of 15.43 is considered Fairly compared with the five-year average of 16.65. The fair price of Cheesecake Factory Inc (CAKE) is between 29.29 to 122.44 according to relative valuation methord.

Relative Value

Fair Zone

29.29-122.44

Current Price：61.94

Fair

15.43

Trailing

Forward

14.82

EV/EBITDA

Cheesecake Factory Inc. (CAKE) has a current EV/EBITDA of 14.82. The 5-year average EV/EBITDA is 14.98. The thresholds are as follows: Strongly Undervalued below 8.91, Undervalued between 8.91 and 11.94, Fairly Valued between 18.01 and 11.94, Overvalued between 18.01 and 21.04, and Strongly Overvalued above 21.04. The current Forward EV/EBITDA of 14.82 falls within the Historic Trend Line -Fairly Valued range.

22.17

EV/EBIT

Cheesecake Factory Inc. (CAKE) has a current EV/EBIT of 22.17. The 5-year average EV/EBIT is 26.68. The thresholds are as follows: Strongly Undervalued below -3.09, Undervalued between -3.09 and 11.79, Fairly Valued between 41.56 and 11.79, Overvalued between 41.56 and 56.44, and Strongly Overvalued above 56.44. The current Forward EV/EBIT of 22.17 falls within the Historic Trend Line -Fairly Valued range.

0.79

Cheesecake Factory Inc. (CAKE) has a current PS of 0.79. The 5-year average PS is 0.60. The thresholds are as follows: Strongly Undervalued below 0.33, Undervalued between 0.33 and 0.47, Fairly Valued between 0.74 and 0.47, Overvalued between 0.74 and 0.87, and Strongly Overvalued above 0.87. The current Forward PS of 0.79 falls within the Overvalued range.

9.97

P/OCF

Cheesecake Factory Inc. (CAKE) has a current P/OCF of 9.97. The 5-year average P/OCF is 7.62. The thresholds are as follows: Strongly Undervalued below 4.59, Undervalued between 4.59 and 6.10, Fairly Valued between 9.14 and 6.10, Overvalued between 9.14 and 10.66, and Strongly Overvalued above 10.66. The current Forward P/OCF of 9.97 falls within the Overvalued range.

22.03

P/FCF

Cheesecake Factory Inc. (CAKE) has a current P/FCF of 22.03. The 5-year average P/FCF is 18.87. The thresholds are as follows: Strongly Undervalued below 8.03, Undervalued between 8.03 and 13.45, Fairly Valued between 24.28 and 13.45, Overvalued between 24.28 and 29.70, and Strongly Overvalued above 29.70. The current Forward P/FCF of 22.03 falls within the Historic Trend Line -Fairly Valued range.

Cheesecake Factory Inc (CAKE) has a current Price-to-Book (P/B) ratio of 7.65. Compared to its 3-year average P/B ratio of 5.85 , the current P/B ratio is approximately 30.84% higher. Relative to its 5-year average P/B ratio of 6.10, the current P/B ratio is about 25.41% higher. Cheesecake Factory Inc (CAKE) has a Forward Free Cash Flow (FCF) yield of approximately 4.27%. Compared to its 3-year average FCF yield of 3.75%, the current FCF yield is approximately 14.00% lower. Relative to its 5-year average FCF yield of 3.61% , the current FCF yield is about 18.26% lower.

7.65

P/B

Median3y

5.85

Median5y

6.10

4.27

FCF Yield

Median3y

3.75

Median5y

3.61

Competitors Valuation Multiple

The average P/S ratio for CAKE's competitors is 0.59, providing a benchmark for relative valuation. Cheesecake Factory Inc Corp (CAKE) exhibits a P/S ratio of 0.79, which is 34.11% above the industry average. Given its robust revenue growth of 5.73%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

CAKE.O

Cheesecake Factory Inc

Papa John's International Inc

Arcos Dorados Holdings Inc

Cracker Barrel Old Country Store Inc

0.34

0.49%

1.29B

Performance Decomposition

Market capitalization of CAKE increased by 59.32% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 12.29 to 19.02.

The secondary factor is the Revenue Growth, contributed 5.73%to the performance.

Overall, the performance of CAKE in the past 1 year is driven by P/E Change. Which is more unsustainable.

5.73%

904.04M → 955.83M

Revenue Growth

-1.21%

5.80 → 5.73

Margin Expansion

54.80%

12.29 → 19.02

P/E Change

59.32%