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 16.33 is considered Undervalued compared with the five-year average of 18.21. The fair price of Darden Restaurants Inc (DRI) is between 207.01 to 249.63 according to relative valuation methord. Compared to the current price of 176.26 USD , Darden Restaurants Inc is Undervalued By 14.86%.
Relative Value
Fair Zone
207.01-249.63
Current Price：176.26
14.86%
Undervalued
16.33
PE
1Y
3Y
5Y
Trailing
Forward
12.99
EV/EBITDA
Darden Restaurants Inc. (DRI) has a current EV/EBITDA of 12.99. The 5-year average EV/EBITDA is 14.24. The thresholds are as follows: Strongly Undervalued below 11.43, Undervalued between 11.43 and 12.83, Fairly Valued between 15.64 and 12.83, Overvalued between 15.64 and 17.05, and Strongly Overvalued above 17.05. The current Forward EV/EBITDA of 12.99 falls within the Historic Trend Line -Fairly Valued range.
17.47
EV/EBIT
Darden Restaurants Inc. (DRI) has a current EV/EBIT of 17.47. The 5-year average EV/EBIT is 19.11. The thresholds are as follows: Strongly Undervalued below 14.18, Undervalued between 14.18 and 16.64, Fairly Valued between 21.57 and 16.64, Overvalued between 21.57 and 24.03, and Strongly Overvalued above 24.03. The current Forward EV/EBIT of 17.47 falls within the Historic Trend Line -Fairly Valued range.
1.56
PS
Darden Restaurants Inc. (DRI) has a current PS of 1.56. The 5-year average PS is 1.73. 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 1.56 falls within the Historic Trend Line -Fairly Valued range.
10.68
P/OCF
Darden Restaurants Inc. (DRI) has a current P/OCF of 10.68. The 5-year average P/OCF is 11.87. The thresholds are as follows: Strongly Undervalued below 9.75, Undervalued between 9.75 and 10.81, Fairly Valued between 12.93 and 10.81, Overvalued between 12.93 and 13.99, and Strongly Overvalued above 13.99. The current Forward P/OCF of 10.68 falls within the Undervalued range.
17.14
P/FCF
Darden Restaurants Inc. (DRI) has a current P/FCF of 17.14. The 5-year average P/FCF is 18.36. The thresholds are as follows: Strongly Undervalued below 14.80, Undervalued between 14.80 and 16.58, Fairly Valued between 20.14 and 16.58, Overvalued between 20.14 and 21.92, and Strongly Overvalued above 21.92. The current Forward P/FCF of 17.14 falls within the Historic Trend Line -Fairly Valued range.
Darden Restaurants Inc (DRI) has a current Price-to-Book (P/B) ratio of 9.22. Compared to its 3-year average P/B ratio of 9.30 , the current P/B ratio is approximately -0.86% higher. Relative to its 5-year average P/B ratio of 8.41, the current P/B ratio is about 9.60% higher. Darden Restaurants Inc (DRI) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 4.98%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 4.85% , the current FCF yield is about -100.00% lower.
9.22
P/B
Median3y
9.30
Median5y
8.41
5.31
FCF Yield
Median3y
4.98
Median5y
4.85
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
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of DRI decreased by 4.18% 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.
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