SHAK PE Ratio & Valuation,Is SHAK Overvalued

SHAK Relative Valuation

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

Historical Valuation

Shake Shack Inc (SHAK) is now in the Fair zone, suggesting that its current forward PS ratio of 2.07 is considered Fairly compared with the five-year average of -80.72. The fair price of Shake Shack Inc (SHAK) is between 70.79 to 142.84 according to relative valuation methord.

Relative Value

Fair Zone

70.79-142.84

Current Price：84.46

Fair

54.29

16.42

EV/EBITDA

Shake Shack Inc. (SHAK) has a current EV/EBITDA of 16.42. The 5-year average EV/EBITDA is 31.97. The thresholds are as follows: Strongly Undervalued below -1.63, Undervalued between -1.63 and 15.17, Fairly Valued between 48.76 and 15.17, Overvalued between 48.76 and 65.56, and Strongly Overvalued above 65.56. The current Forward EV/EBITDA of 16.42 falls within the Historic Trend Line -Fairly Valued range.

48.88

EV/EBIT

Shake Shack Inc. (SHAK) has a current EV/EBIT of 48.88. The 5-year average EV/EBIT is -242.25. The thresholds are as follows: Strongly Undervalued below -1848.38, Undervalued between -1848.38 and -1045.31, Fairly Valued between 560.82 and -1045.31, Overvalued between 560.82 and 1363.88, and Strongly Overvalued above 1363.88. The current Forward EV/EBIT of 48.88 falls within the Historic Trend Line -Fairly Valued range.

2.07

Shake Shack Inc. (SHAK) has a current PS of 2.07. The 5-year average PS is 2.98. The thresholds are as follows: Strongly Undervalued below 0.77, Undervalued between 0.77 and 1.88, Fairly Valued between 4.08 and 1.88, Overvalued between 4.08 and 5.19, and Strongly Overvalued above 5.19. The current Forward PS of 2.07 falls within the Historic Trend Line -Fairly Valued range.

20.39

P/OCF

Shake Shack Inc. (SHAK) has a current P/OCF of 20.39. The 5-year average P/OCF is 24.05. The thresholds are as follows: Strongly Undervalued below 3.50, Undervalued between 3.50 and 13.77, Fairly Valued between 34.33 and 13.77, Overvalued between 34.33 and 44.61, and Strongly Overvalued above 44.61. The current Forward P/OCF of 20.39 falls within the Historic Trend Line -Fairly Valued range.

162.97

P/FCF

Shake Shack Inc. (SHAK) has a current P/FCF of 162.97. The 5-year average P/FCF is 99.81. The thresholds are as follows: Strongly Undervalued below -1210.04, Undervalued between -1210.04 and -555.12, Fairly Valued between 754.74 and -555.12, Overvalued between 754.74 and 1409.66, and Strongly Overvalued above 1409.66. The current Forward P/FCF of 162.97 falls within the Historic Trend Line -Fairly Valued range.

Shake Shack Inc (SHAK) has a current Price-to-Book (P/B) ratio of 6.58. Compared to its 3-year average P/B ratio of 7.85 , the current P/B ratio is approximately -16.25% higher. Relative to its 5-year average P/B ratio of 7.59, the current P/B ratio is about -13.34% higher. Shake Shack Inc (SHAK) has a Forward Free Cash Flow (FCF) yield of approximately 1.88%. Compared to its 3-year average FCF yield of -0.44%, the current FCF yield is approximately -523.90% lower. Relative to its 5-year average FCF yield of -0.94% , the current FCF yield is about -300.83% lower.

6.58

P/B

Median3y

7.85

Median5y

7.59

1.88

FCF Yield

Median3y

-0.44

Median5y

-0.94

Competitors Valuation Multiple

The average P/S ratio for SHAK's competitors is 1.02, providing a benchmark for relative valuation. Shake Shack Inc Corp (SHAK) exhibits a P/S ratio of 2.07, which is 102.59% above the industry average. Given its robust revenue growth of 15.93%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

Revenue Growth

Market Cap

Performance Decomposition

Market capitalization of SHAK decreased by 35.93% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 32.00 to 81.41.

The secondary factor is the Revenue Growth, contributed 15.93%to the performance.

Overall, the performance of SHAK in the past 1 year is driven by P/E Change. Which is more unsustainable.

15.93%

316.92M → 367.41M

Revenue Growth

-206.27%

-3.51 → 3.73

Margin Expansion

154.41%

32.00 → 81.41

P/E Change

-35.93%

129.80 → 83.16

Mkt Cap Growth

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Frequently Asked Questions

Is Shake Shack Inc (SHAK) currently overvalued or undervalued?

What is Shake Shack Inc (SHAK) fair value?

SHAK'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 Shake Shack Inc (SHAK) is between 70.79 to 142.84 according to relative valuation methord.

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

What is the current P/B ratio for Shake Shack Inc (SHAK) as of Dec 15 2025?

As of Dec 15 2025, Shake Shack Inc (SHAK) has a P/B ratio of 6.58. This indicates that the market values SHAK at 6.58 times its book value.

What is the current FCF Yield for Shake Shack Inc (SHAK) as of Dec 15 2025?

As of Dec 15 2025, Shake Shack Inc (SHAK) has a FCF Yield of 1.88%. This means that for every dollar of Shake Shack Inc’s market capitalization, the company generates 1.88 cents in free cash flow.

What is the current Forward P/E ratio for Shake Shack Inc (SHAK) as of Dec 15 2025?

As of Dec 15 2025, Shake Shack Inc (SHAK) has a Forward P/E ratio of 54.29. This means the market is willing to pay $54.29 for every dollar of Shake Shack Inc’s expected earnings over the next 12 months.

What is the current Forward P/S ratio for Shake Shack Inc (SHAK) as of Dec 15 2025?

As of Dec 15 2025, Shake Shack Inc (SHAK) has a Forward P/S ratio of 2.07. This means the market is valuing SHAK at $2.07 for every dollar of expected revenue over the next 12 months.

SHAK Valuation