* Note: Prices are in Million (M) USD.
Description:
CAVA Group, Inc. owns and operates a chain of Mediterranean restaurants. The company is headquartered in Washington, District of Columbia.
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Cash : $289 M
Debt : $412 M
EBITDA : $132 M
Net Debt (Debt - Cash): $123 M
Since Net Debt is covered by EBITDA within 1 year, 3 points assigned.
This criteria used industry in which company operates:
Sector: Consumer discretionary
Industry: Restaurants
Based on industry, 3 points assigned.
This criteria used Company's Price To Earning (P/E) Ratio to determines its fair value:
Forward PE Ratio: 97.90
Since Forward PE Ratio is greater than 35, 0 point assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Using last 6 overlapping fiscal years (max 20).Average Free Cash Flow: $-117 M
Average Revenue: $686 M
Revenue Converted To Free Cash Flow (%): -17.0%
Since Free Cash Flow (FCF) to Revenue percentage is non-positive, 0 point assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2024-12-31): $964 M
Revenue 4 Years Ago (2020-12-31): $932 M
Last 5 Years Average Revenue Growth: 1%
Since Revenue Growth is between 0 - 5, 1 point assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2024-12-31): $118 M
Share Count 5 Years Ago (2020-12-31): $48 M
Company is not buying back its own shares, 0 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Next Year Earnings Per Share (EPS): $0.81
Trailing 12-Month Earnings Per Share (EPS): $0.57
Average Earnings Per Share (EPS): $0.69
Dividend Per Share (DPS): $0
Payout Ratio: 0%
Dividend Yield: 0%
Since Dividend Per Share is less than or equal to 0, 0 point assigned.
Since Dividend Yield is less than 1, 0 point assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Using last 6 valid ROE years (max 20).Average ROE: -1.6%
Since Average ROE is non-positive, 0 point assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $68
52-Week Low: $70
Threshold Price (15% Above 52-Week Low): $81
Since Current price is within 15% threshold, 5 points assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $9,750 M
Since Market Cap is less than 10B, 1 point assigned.
% Exposure to Total Portfolio
Based on the market cap, we recommend do not exceed 0.20% exposure of Total Portfolio.
Value-Trade has assigned 13 points to above CAVA Group, Inc. (CAVA) stock.
Heads up: One or more P/E inputs look exaggerated and may skew the blend.
• Industry Based PE 25.00 (>2× median)
Further research is recommended; please use your own due diligence.
In such cases, multiplying earnings by the long-run average P/E typically gives a closer, more reliable fair value.
Fair Value PE 12, Industry Based PE 25, RCFC Based PE 12, ROE Based PE 10, Risk-Free Anchored PE (25% MoS) 17.08. Based on these 5 values, average assigned is 15.22. Value-Trades has assined P/E value 15.22. Since an average (Current Year EPS + Next Year EPS) earning per share is $0.69.
The fair value of CAVA Group, Inc. (CAVA) stock should be (15.22 x $0.69) = $10.5.
