DRI Valuation

Darden Restaurants Inc

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180.150

+1.95(1.094%)1D

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 16.68 is considered Undervalued compared with the five-year average of 18.34. The fair price of Darden Restaurants Inc (DRI) is between 182.64 to 226.51 according to relative valuation methord. Compared to the current price of 180.15 USD , Darden Restaurants Inc is Undervalued By 1.36%.

Relative Value

Fair Zone

182.64-226.51

Current Price：180.15

1.36%

Undervalued

16.68

Trailing

Forward

13.13

EV/EBITDA

Darden Restaurants Inc. (DRI) has a current EV/EBITDA of 13.13. The 5-year average EV/EBITDA is 14.33. The thresholds are as follows: Strongly Undervalued below 11.40, Undervalued between 11.40 and 12.87, Fairly Valued between 15.80 and 12.87, Overvalued between 15.80 and 17.26, and Strongly Overvalued above 17.26. The current Forward EV/EBITDA of 13.13 falls within the Historic Trend Line -Fairly Valued range.

17.65

EV/EBIT

Darden Restaurants Inc. (DRI) has a current EV/EBIT of 17.65. The 5-year average EV/EBIT is 19.28. The thresholds are as follows: Strongly Undervalued below 14.01, Undervalued between 14.01 and 16.64, Fairly Valued between 21.92 and 16.64, Overvalued between 21.92 and 24.55, and Strongly Overvalued above 24.55. The current Forward EV/EBIT of 17.65 falls within the Historic Trend Line -Fairly Valued range.

180.15

Darden Restaurants Inc. (DRI) has a current PS of 180.15. The 5-year average PS is 2.31. The thresholds are as follows: Strongly Undervalued below -18.02, Undervalued between -18.02 and -7.85, Fairly Valued between 12.48 and -7.85, Overvalued between 12.48 and 22.64, and Strongly Overvalued above 22.64. The current Forward PS of 180.15 falls within the Strongly Overvalued range.

10.85

P/OCF

Darden Restaurants Inc. (DRI) has a current P/OCF of 10.85. The 5-year average P/OCF is 11.95. The thresholds are as follows: Strongly Undervalued below 9.71, Undervalued between 9.71 and 10.83, Fairly Valued between 13.08 and 10.83, Overvalued between 13.08 and 14.20, and Strongly Overvalued above 14.20. The current Forward P/OCF of 10.85 falls within the Historic Trend Line -Fairly Valued range.

17.41

P/FCF

Darden Restaurants Inc. (DRI) has a current P/FCF of 17.41. The 5-year average P/FCF is 18.40. The thresholds are as follows: Strongly Undervalued below 14.83, Undervalued between 14.83 and 16.61, Fairly Valued between 20.18 and 16.61, Overvalued between 20.18 and 21.97, and Strongly Overvalued above 21.97. The current Forward P/FCF of 17.41 falls within the Historic Trend Line -Fairly Valued range.

Darden Restaurants Inc (DRI) has a current Price-to-Book (P/B) ratio of 9.42. Compared to its 3-year average P/B ratio of 9.28 , the current P/B ratio is approximately 1.51% higher. Relative to its 5-year average P/B ratio of 8.35, the current P/B ratio is about 12.83% higher. Darden Restaurants Inc (DRI) has a Forward Free Cash Flow (FCF) yield of approximately 5.22%. Compared to its 3-year average FCF yield of 4.99%, the current FCF yield is approximately 4.63% lower. Relative to its 5-year average FCF yield of 4.79% , the current FCF yield is about 9.00% lower.

9.42

P/B

Median3y

9.28

Median5y

8.35

5.22

FCF Yield

Median3y

4.99

Median5y

4.79

Competitors Valuation Multiple

The average P/S ratio for DRI's competitors is 148.17, providing a benchmark for relative valuation. Darden Restaurants Inc Corp (DRI) exhibits a P/S ratio of 180.15, which is 21.58% 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

DRI.N

Darden Restaurants Inc

Yum China Holdings Inc

Restaurant Brands International Inc

Performance Decomposition

Market capitalization of DRI increased by 2.20% 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

-20.72%

24.34 → 19.30

P/E Change

2.20%