TOST Valuation

Toast Inc

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45.100

+0.15(0.334%)1D

Overview
Forecast
Valuation
Earnings

TOST Relative Valuation

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

Historical Valuation

Toast Inc (TOST) is now in the Fair zone, suggesting that its current forward PS ratio of 3.95 is considered Fairly compared with the five-year average of -199.25. The fair price of Toast Inc (TOST) is between 31.29 to 73.20 according to relative valuation methord.

Relative Value

Fair Zone

31.29-73.20

Current Price：45.10

Fair

43.47

Trailing

Forward

37.27

EV/EBITDA

Toast Inc. (TOST) has a current EV/EBITDA of 37.27. The 5-year average EV/EBITDA is 32.18. The thresholds are as follows: Strongly Undervalued below -213.09, Undervalued between -213.09 and -90.45, Fairly Valued between 154.81 and -90.45, Overvalued between 154.81 and 277.44, and Strongly Overvalued above 277.44. The current Forward EV/EBITDA of 37.27 falls within the Historic Trend Line -Fairly Valued range.

39.02

EV/EBIT

Toast Inc. (TOST) has a current EV/EBIT of 39.02. The 5-year average EV/EBIT is -252.58. The thresholds are as follows: Strongly Undervalued below -2437.64, Undervalued between -2437.64 and -1345.11, Fairly Valued between 839.95 and -1345.11, Overvalued between 839.95 and 1932.48, and Strongly Overvalued above 1932.48. The current Forward EV/EBIT of 39.02 falls within the Historic Trend Line -Fairly Valued range.

3.95

Toast Inc. (TOST) has a current PS of 3.95. The 5-year average PS is 3.57. The thresholds are as follows: Strongly Undervalued below -1.01, Undervalued between -1.01 and 1.28, Fairly Valued between 5.87 and 1.28, Overvalued between 5.87 and 8.16, and Strongly Overvalued above 8.16. The current Forward PS of 3.95 falls within the Historic Trend Line -Fairly Valued range.

40.81

P/OCF

Toast Inc. (TOST) has a current P/OCF of 40.81. The 5-year average P/OCF is 2.94. The thresholds are as follows: Strongly Undervalued below -265.05, Undervalued between -265.05 and -131.05, Fairly Valued between 136.93 and -131.05, Overvalued between 136.93 and 270.92, and Strongly Overvalued above 270.92. The current Forward P/OCF of 40.81 falls within the Historic Trend Line -Fairly Valued range.

41.62

P/FCF

Toast Inc. (TOST) has a current P/FCF of 41.62. The 5-year average P/FCF is -53.62. The thresholds are as follows: Strongly Undervalued below -746.57, Undervalued between -746.57 and -400.09, Fairly Valued between 292.86 and -400.09, Overvalued between 292.86 and 639.33, and Strongly Overvalued above 639.33. The current Forward P/FCF of 41.62 falls within the Historic Trend Line -Fairly Valued range.

Toast Inc (TOST) has a current Price-to-Book (P/B) ratio of 14.41. Compared to its 3-year average P/B ratio of 11.03 , the current P/B ratio is approximately 30.63% higher. Relative to its 5-year average P/B ratio of 11.22, the current P/B ratio is about 28.50% higher. Toast Inc (TOST) has a Forward Free Cash Flow (FCF) yield of approximately 1.93%. Compared to its 3-year average FCF yield of 0.11%, the current FCF yield is approximately 1694.10% lower. Relative to its 5-year average FCF yield of -0.04% , the current FCF yield is about -5330.81% lower.

14.41

P/B

Median3y

11.03

Median5y

11.22

1.93

FCF Yield

Median3y

0.11

Median5y

-0.04

Competitors Valuation Multiple

The average P/S ratio for TOST's competitors is 7.45, providing a benchmark for relative valuation. Toast Inc Corp (TOST) exhibits a P/S ratio of 3.95, which is -47.03% above the industry average. Given its robust revenue growth of 24.80%, this premium appears sustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

Zoom Communications Inc

4.97

4.71%

24.37B

Performance Decomposition

Market capitalization of TOST increased by 59.31% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 1.13 to 5.16.

The secondary factor is the Revenue Growth, contributed 24.80%to the performance.

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

24.80%

1.24B → 1.55B

Revenue Growth

356.64%

1.13 → 5.16

Margin Expansion

-322.13%

-54.85 → 121.83

P/E Change

59.31%