QSR Valuation

Restaurant Brands International Inc

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68.590

-1.82(-2.585%)1D

QSR Relative Valuation

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

Historical Valuation

Restaurant Brands International Inc (QSR) is now in the Undervalued zone, suggesting that its current forward PE ratio of 17.87 is considered Undervalued compared with the five-year average of 20.29. The fair price of Restaurant Brands International Inc (QSR) is between 72.98 to 87.62 according to relative valuation methord. Compared to the current price of 68.53 USD , Restaurant Brands International Inc is Undervalued By 6.11%.

Relative Value

Fair Zone

72.98-87.62

Current Price：68.53

6.11%

Undervalued

17.87

Trailing

Forward

12.30

EV/EBITDA

Restaurant Brands International Inc. (QSR) has a current EV/EBITDA of 12.30. The 5-year average EV/EBITDA is 13.64. The thresholds are as follows: Strongly Undervalued below 11.82, Undervalued between 11.82 and 12.73, Fairly Valued between 14.54 and 12.73, Overvalued between 14.54 and 15.45, and Strongly Overvalued above 15.45. The current Forward EV/EBITDA of 12.30 falls within the Undervalued range.

14.28

EV/EBIT

Restaurant Brands International Inc. (QSR) has a current EV/EBIT of 14.28. The 5-year average EV/EBIT is 15.72. The thresholds are as follows: Strongly Undervalued below 13.76, Undervalued between 13.76 and 14.74, Fairly Valued between 16.70 and 14.74, Overvalued between 16.70 and 17.69, and Strongly Overvalued above 17.69. The current Forward EV/EBIT of 14.28 falls within the Undervalued range.

70.41

Restaurant Brands International Inc. (QSR) has a current PS of 70.41. The 5-year average PS is 3.50. The thresholds are as follows: Strongly Undervalued below -9.73, Undervalued between -9.73 and -3.11, Fairly Valued between 10.12 and -3.11, Overvalued between 10.12 and 16.74, and Strongly Overvalued above 16.74. The current Forward PS of 70.41 falls within the Strongly Overvalued range.

10.18

P/OCF

Restaurant Brands International Inc. (QSR) has a current P/OCF of 10.18. The 5-year average P/OCF is 12.16. The thresholds are as follows: Strongly Undervalued below 8.78, Undervalued between 8.78 and 10.47, Fairly Valued between 13.86 and 10.47, Overvalued between 13.86 and 15.55, and Strongly Overvalued above 15.55. The current Forward P/OCF of 10.18 falls within the Undervalued range.

13.86

P/FCF

Restaurant Brands International Inc. (QSR) has a current P/FCF of 13.86. The 5-year average P/FCF is 13.93. The thresholds are as follows: Strongly Undervalued below 8.72, Undervalued between 8.72 and 11.33, Fairly Valued between 16.54 and 11.33, Overvalued between 16.54 and 19.14, and Strongly Overvalued above 19.14. The current Forward P/FCF of 13.86 falls within the Historic Trend Line -Fairly Valued range.

Restaurant Brands International Inc (QSR) has a current Price-to-Book (P/B) ratio of 6.83. Compared to its 3-year average P/B ratio of 7.54 , the current P/B ratio is approximately -9.41% higher. Relative to its 5-year average P/B ratio of 7.67, the current P/B ratio is about -11.05% higher. Restaurant Brands International Inc (QSR) has a Forward Free Cash Flow (FCF) yield of approximately 0.06%. Compared to its 3-year average FCF yield of 5.69%, the current FCF yield is approximately -98.95% lower. Relative to its 5-year average FCF yield of 6.34% , the current FCF yield is about -99.06% lower.

6.83

P/B

Median3y

7.54

Median5y

7.67

0.06

FCF Yield

Median3y

5.69

Median5y

6.34

Competitors Valuation Multiple

The average P/S ratio for QSR's competitors is 146.97, providing a benchmark for relative valuation. Restaurant Brands International Inc Corp (QSR) exhibits a P/S ratio of 70.41, which is -52.09% above the industry average. Given its robust revenue growth of 6.90%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

QSR.N

Restaurant Brands International Inc

Chipotle Mexican Grill Inc

Darden Restaurants Inc

Yum China Holdings Inc

Performance Decomposition

Market capitalization of QSR increased by 2.05% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 15.58 to 17.97.

The secondary factor is the Revenue Growth, contributed 6.90%to the performance.

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

6.90%

2.29B → 2.45B

Revenue Growth

15.34%

15.58 → 17.97

Margin Expansion

-20.19%

31.28 → 24.96

P/E Change

2.05%