DRI PE Ratio & Valuation,Is DRI Overvalued

DRI Relative Valuation

DRI'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, DRI is overvalued; if below, it's undervalued.

Historical Valuation

Darden Restaurants Inc (DRI) is now in the Undervalued zone, suggesting that its current forward PE ratio of 16.91 is considered Undervalued compared with the five-year average of 18.16. The fair price of Darden Restaurants Inc (DRI) is between 213.12 to 255.93 according to relative valuation methord. Compared to the current price of 186.85 USD , Darden Restaurants Inc is Undervalued By 12.33%.

Relative Value

Fair Zone

213.12-255.93

Current Price：186.85

12.33%

Undervalued

17.31

13.27

EV/EBITDA

Darden Restaurants Inc. (DRI) has a current EV/EBITDA of 13.27. The 5-year average EV/EBITDA is 14.21. The thresholds are as follows: Strongly Undervalued below 11.46, Undervalued between 11.46 and 12.83, Fairly Valued between 15.58 and 12.83, Overvalued between 15.58 and 16.96, and Strongly Overvalued above 16.96. The current Forward EV/EBITDA of 13.27 falls within the Historic Trend Line -Fairly Valued range.

17.85

EV/EBIT

Darden Restaurants Inc. (DRI) has a current EV/EBIT of 17.85. The 5-year average EV/EBIT is 19.05. The thresholds are as follows: Strongly Undervalued below 14.29, Undervalued between 14.29 and 16.67, Fairly Valued between 21.43 and 16.67, Overvalued between 21.43 and 23.81, and Strongly Overvalued above 23.81. The current Forward EV/EBIT of 17.85 falls within the Historic Trend Line -Fairly Valued range.

1.60

Darden Restaurants Inc. (DRI) has a current PS of 1.60. The 5-year average PS is 1.72. The thresholds are as follows: Strongly Undervalued below 1.32, Undervalued between 1.32 and 1.52, Fairly Valued between 1.93 and 1.52, Overvalued between 1.93 and 2.13, and Strongly Overvalued above 2.13. The current Forward PS of 1.60 falls within the Historic Trend Line -Fairly Valued range.

10.97

P/OCF

Darden Restaurants Inc. (DRI) has a current P/OCF of 10.97. The 5-year average P/OCF is 11.85. The thresholds are as follows: Strongly Undervalued below 9.74, Undervalued between 9.74 and 10.80, Fairly Valued between 12.91 and 10.80, Overvalued between 12.91 and 13.97, and Strongly Overvalued above 13.97. The current Forward P/OCF of 10.97 falls within the Historic Trend Line -Fairly Valued range.

17.62

P/FCF

Darden Restaurants Inc. (DRI) has a current P/FCF of 17.62. The 5-year average P/FCF is 18.34. The thresholds are as follows: Strongly Undervalued below 14.79, Undervalued between 14.79 and 16.57, Fairly Valued between 20.12 and 16.57, Overvalued between 20.12 and 21.90, and Strongly Overvalued above 21.90. The current Forward P/FCF of 17.62 falls within the Historic Trend Line -Fairly Valued range.

Darden Restaurants Inc (DRI) has a current Price-to-Book (P/B) ratio of 9.53. Compared to its 3-year average P/B ratio of 9.31 , the current P/B ratio is approximately 2.33% higher. Relative to its 5-year average P/B ratio of 8.43, the current P/B ratio is about 12.95% higher. Darden Restaurants Inc (DRI) has a Forward Free Cash Flow (FCF) yield of approximately 5.16%. Compared to its 3-year average FCF yield of 4.97%, the current FCF yield is approximately 3.78% lower. Relative to its 5-year average FCF yield of 4.87% , the current FCF yield is about 6.08% lower.

9.75

P/B

Median3y

9.31

Median5y

8.43

5.16

FCF Yield

Median3y

4.97

Median5y

4.87

Competitors Valuation Multiple

The average P/S ratio for DRI's competitors is , providing a benchmark for relative valuation. Darden Restaurants Inc Corp (DRI) exhibits a P/S ratio of , which is NaN% above the industry average. Given its robust revenue growth of 10.44%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

Revenue Growth

Market Cap

Performance Decomposition

Market capitalization of DRI increased by 1.35% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 7.53 to 8.47.

The secondary factor is the Revenue Growth, contributed 10.44%to the performance.

Overall, the performance of DRI in the past 1 year is driven by Margin Expansion. Which is more sustainable.

10.44%

2.76B → 3.04B

Revenue Growth

12.48%

7.53 → 8.47

Margin Expansion

-21.57%

25.46 → 19.97

P/E Change

1.35%

183.95 → 186.43

Mkt Cap Growth

People Also Watch

Frequently Asked Questions

Is Darden Restaurants Inc (DRI) currently overvalued or undervalued?

What is Darden Restaurants Inc (DRI) fair value?

DRI'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 Darden Restaurants Inc (DRI) is between 213.12 to 255.93 according to relative valuation methord.

How does DRI's valuation metrics compare to the industry average?

What is the current P/B ratio for Darden Restaurants Inc (DRI) as of Dec 16 2025?

As of Dec 16 2025, Darden Restaurants Inc (DRI) has a P/B ratio of 9.53. This indicates that the market values DRI at 9.53 times its book value.

What is the current FCF Yield for Darden Restaurants Inc (DRI) as of Dec 16 2025?

As of Dec 16 2025, Darden Restaurants Inc (DRI) has a FCF Yield of 5.16%. This means that for every dollar of Darden Restaurants Inc’s market capitalization, the company generates 5.16 cents in free cash flow.

What is the current Forward P/E ratio for Darden Restaurants Inc (DRI) as of Dec 16 2025?

As of Dec 16 2025, Darden Restaurants Inc (DRI) has a Forward P/E ratio of 16.91. This means the market is willing to pay $16.91 for every dollar of Darden Restaurants Inc’s expected earnings over the next 12 months.

What is the current Forward P/S ratio for Darden Restaurants Inc (DRI) as of Dec 16 2025?

As of Dec 16 2025, Darden Restaurants Inc (DRI) has a Forward P/S ratio of 1.60. This means the market is valuing DRI at $1.60 for every dollar of expected revenue over the next 12 months.

DRI Valuation