CAVA Relative Valuation
CAVA'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, CAVA is overvalued; if below, it's undervalued.
Historical Valuation
CAVA Group Inc (CAVA) is now in the Overvalued zone, suggesting that its current forward PS ratio of 48.64 is considered Overvalued compared with the five-year average of -418.21. The fair price of CAVA Group Inc (CAVA) is between 23.45 to 33.60 according to relative valuation methord. Compared to the current price of 48.64 USD , CAVA Group Inc is Overvalued By 44.75%.
Relative Value
Fair Zone
23.45-33.60
Current Price：48.64
44.75%
Overvalued
82.08
PE
1Y
3Y
5Y
Trailing
Forward
34.83
EV/EBITDA
CAVA Group Inc. (CAVA) has a current EV/EBITDA of 34.83. The 5-year average EV/EBITDA is 71.21. The thresholds are as follows: Strongly Undervalued below 26.69, Undervalued between 26.69 and 48.95, Fairly Valued between 93.47 and 48.95, Overvalued between 93.47 and 115.73, and Strongly Overvalued above 115.73. The current Forward EV/EBITDA of 34.83 falls within the Undervalued range.
83.31
EV/EBIT
CAVA Group Inc. (CAVA) has a current EV/EBIT of 83.31. The 5-year average EV/EBIT is 100.36. The thresholds are as follows: Strongly Undervalued below -703.24, Undervalued between -703.24 and -301.44, Fairly Valued between 502.17 and -301.44, Overvalued between 502.17 and 903.97, and Strongly Overvalued above 903.97. The current Forward EV/EBIT of 83.31 falls within the Historic Trend Line -Fairly Valued range.
48.64
PS
CAVA Group Inc. (CAVA) has a current PS of 48.64. The 5-year average PS is 9.26. The thresholds are as follows: Strongly Undervalued below -3.43, Undervalued between -3.43 and 2.91, Fairly Valued between 15.60 and 2.91, Overvalued between 15.60 and 21.95, and Strongly Overvalued above 21.95. The current Forward PS of 48.64 falls within the Strongly Overvalued range.
36.13
P/OCF
CAVA Group Inc. (CAVA) has a current P/OCF of 36.13. The 5-year average P/OCF is 63.97. The thresholds are as follows: Strongly Undervalued below 22.39, Undervalued between 22.39 and 43.18, Fairly Valued between 84.76 and 43.18, Overvalued between 84.76 and 105.56, and Strongly Overvalued above 105.56. The current Forward P/OCF of 36.13 falls within the Undervalued range.
211.47
P/FCF
CAVA Group Inc. (CAVA) has a current P/FCF of 211.47. The 5-year average P/FCF is -257.08. The thresholds are as follows: Strongly Undervalued below -2856.53, Undervalued between -2856.53 and -1556.80, Fairly Valued between 1042.65 and -1556.80, Overvalued between 1042.65 and 2342.38, and Strongly Overvalued above 2342.38. The current Forward P/FCF of 211.47 falls within the Historic Trend Line -Fairly Valued range.
CAVA Group Inc (CAVA) has a current Price-to-Book (P/B) ratio of 7.34. Compared to its 3-year average P/B ratio of 13.96 , the current P/B ratio is approximately -47.46% higher. Relative to its 5-year average P/B ratio of 13.96, the current P/B ratio is about -47.46% higher. CAVA Group Inc (CAVA) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of -0.30%, the current FCF yield is approximately -101.52% lower. Relative to its 5-year average FCF yield of -0.30% , the current FCF yield is about -101.52% lower.
7.34
P/B
Median3y
13.96
Median5y
13.96
0.00
FCF Yield
Median3y
-0.30
Median5y
-0.30
Competitors Valuation Multiple
The average P/S ratio for CAVA's competitors is 91.83, providing a benchmark for relative valuation. CAVA Group Inc Corp (CAVA) exhibits a P/S ratio of 48.64, which is -47.03% above the industry average. Given its robust revenue growth of 19.86%, 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 CAVA decreased by 65.48% over the past 1 year. The primary factor behind the change was an increase in Revenue Growth from 243.82M to 292.24M.
The secondary factor is the Margin Expansion, contributed -31.48%to the performance.
Overall, the performance of CAVA in the past 1 year is driven by Revenue Growth. Which is more sustainable.
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