Chipotle Mexican Valuation
| CMG Stock | USD 2,927 11.76 0.40% |
At this time, the firm appears to be overvalued. Chipotle Mexican Grill shows a prevailing Real Value of $2741.49 per share. The current price of the firm is $2926.76. Our model approximates the value of Chipotle Mexican Grill from analyzing the firm fundamentals such as Profit Margin of 0.12 %, return on equity of 0.45, and Current Valuation of 81.85 B as well as examining its technical indicators and probability of bankruptcy. In general, most investors favor locking in undervalued instruments and disposing overvalued instruments since, at some point, asset prices and their ongoing real values will blend. Key fundamental drivers impacting Chipotle Mexican's valuation include:
Price Book 26.4844 | Enterprise Value 81.8 B | Enterprise Value Ebitda 42.9484 | Price Sales 8.2155 | Forward PE 54.9451 |
Overvalued
Today
Please note that Chipotle Mexican's price fluctuation is very steady at this time. Calculation of the real value of Chipotle Mexican Grill is based on 3 months time horizon. Increasing Chipotle Mexican's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Chipotle Mexican Grill is useful when determining the fair value of the Chipotle stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Chipotle Mexican. Since Chipotle Mexican is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Chipotle Stock. However, Chipotle Mexican's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 2926.76 | Real 2741.49 | Target 2163.53 | Hype 2930.36 | Naive 2896.72 |
The real value of Chipotle Stock, also known as its intrinsic value, is the underlying worth of Chipotle Mexican Grill Company, which is reflected in its stock price. It is based on Chipotle Mexican's financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of Chipotle Mexican's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Chipotle Mexican's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
Estimating the potential upside or downside of Chipotle Mexican Grill helps investors to forecast how Chipotle stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Chipotle Mexican more accurately as focusing exclusively on Chipotle Mexican's fundamentals will not take into account other important factors: Traditionally analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Chipotle Mexican's intrinsic value based on its ongoing forecasts of Chipotle Mexican's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Chipotle Mexican's closest peers. When choosing an evaluation method for Chipotle Mexican Grill, ensure it is appropriate for the firm given its current financial situation and market classification. If more than one evaluation category is relevant, we suggest using both methods to arrive at a better estimate.
Chipotle Mexican Investments |
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Chipotle Valuation Trend
Knowing Chipotle Mexican's actual value is paramount for traders to make sound investment determinations. Chipotle Mexican's real value is not only important for the investor to make better decisions but also for a more accurate overall view of Chipotle Mexican's financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both Chipotle Mexican's enterprise value as well as its market capitalization is the best way to gauging the value of the company and is usually enough for investors to make market timing descisions.
Chipotle Market Cap
Chipotle Mexican Grill is rated third in market capitalization category among related companies. Market capitalization of Consumer Discretionary industry is currently estimated at about 480.05 Billion. Chipotle Mexican retains roughly 79.93 Billion in market capitalization claiming about 17% of stocks in Consumer Discretionary industry.Chipotle Mexican Valuation Ratios as Compared to Competition
Comparative valuation techniques use various fundamental indicators to help in determining Chipotle Mexican's current stock value. Our valuation model uses many indicators to compare Chipotle Mexican value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Chipotle Mexican competition to find correlations between indicators driving Chipotle Mexican's intrinsic value. More Info.Chipotle Mexican Grill is rated third in price to earning category among related companies. It is number one stock in price to book category among related companies fabricating about 0.25 of Price To Book per Price To Earning. The ratio of Price To Earning to Price To Book for Chipotle Mexican Grill is roughly 4.01 . The Chipotle Mexican's current Price To Book Ratio is estimated to increase to 21.61. Comparative valuation analysis is a catch-all model that can be used if you cannot value Chipotle Mexican by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Chipotle Mexican's Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Chipotle Mexican's earnings, one of the primary drivers of an investment's value.Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Chipotle Mexican's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Chipotle Mexican and how it compares across the competition.
About Chipotle Mexican Valuation
The stock valuation mechanism determines the current worth of Chipotle Mexican Grill on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Chipotle Mexican Grill. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Chipotle Mexican Grill based exclusively on its fundamental and basic technical indicators. By analyzing Chipotle Mexican's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Chipotle Mexican's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Chipotle Mexican. We calculate exposure to Chipotle Mexican's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Chipotle Mexican's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 2.6 B | 2.7 B | |
| Pretax Profit Margin | 0.16 | 0.17 | |
| Operating Profit Margin | 0.16 | 0.17 | |
| Net Profit Margin | 0.12 | 0.13 | |
| Gross Profit Margin | 0.26 | 0.26 |
8 Steps to conduct Chipotle Mexican's Valuation Analysis
Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Chipotle Mexican's potential worth based on factors such as financial performance, market conditions, growth prospects, and overall economic environment. The result of company valuation is a single number representing a Company's current market value. This value can be used as a benchmark for various financial transactions such as mergers and acquisitions, initial public offerings (IPOs), or private equity investments. To conduct Chipotle Mexican's valuation analysis, follow these 8 steps:- Gather financial information: Obtain Chipotle Mexican's financial statements, including balance sheets, income statements, and cash flow statements.
- Determine Chipotle Mexican's revenue streams: Identify Chipotle Mexican's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
- Analyze market data: Research Chipotle Mexican's industry and market trends, including the size of the market, growth rate, and competition.
- Establish Chipotle Mexican's growth potential: Evaluate Chipotle Mexican's management, business model, and growth potential.
- Determine Chipotle Mexican's financial performance: Analyze its financial statements to assess its historical performance and future potential.
- Choose a valuation method: Consider the Company's specific circumstances and choose an appropriate valuation method, such as the discounted cash flow (DCF) or comparable analysis method.
- Calculate the value: Apply the chosen valuation method to the financial information and market data to calculate Chipotle Mexican's estimated value.
- Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
Chipotle Mexican Growth Indicators
Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, investing in growth stocks can be very risky. If the company such as Chipotle Mexican does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
| Common Stock Shares Outstanding | 27.7 M | |
| Quarterly Earnings Growth Y O Y | 0.273 | |
| Forward Price Earnings | 54.9451 |
Chipotle Mexican Current Valuation Indicators
Valuation refers to the process of determining the present value of Chipotle Mexican Grill and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Chipotle we look at many different elements of the entity such as Chipotle's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Chipotle Mexican's valuation analysis is also a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Chipotle Mexican's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Chipotle Mexican, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Chipotle Mexican's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Chipotle Mexican's worth.When determining whether Chipotle Mexican Grill is a strong investment it is important to analyze Chipotle Mexican's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Chipotle Mexican's future performance. For an informed investment choice regarding Chipotle Stock, refer to the following important reports: Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Chipotle Mexican Grill. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in population. You can also try the Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Complementary Tools for Chipotle Stock analysis
When running Chipotle Mexican's price analysis, check to measure Chipotle Mexican's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Chipotle Mexican is operating at the current time. Most of Chipotle Mexican's value examination focuses on studying past and present price action to predict the probability of Chipotle Mexican's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Chipotle Mexican's price. Additionally, you may evaluate how the addition of Chipotle Mexican to your portfolios can decrease your overall portfolio volatility.
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Is Chipotle Mexican's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Chipotle Mexican. If investors know Chipotle will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Chipotle Mexican listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.273 | Earnings Share 44.31 | Revenue Per Share 358.253 | Quarterly Revenue Growth 0.154 | Return On Assets 0.1333 |
The market value of Chipotle Mexican Grill is measured differently than its book value, which is the value of Chipotle that is recorded on the company's balance sheet. Investors also form their own opinion of Chipotle Mexican's value that differs from its market value or its book value, called intrinsic value, which is Chipotle Mexican's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Chipotle Mexican's market value can be influenced by many factors that don't directly affect Chipotle Mexican's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Chipotle Mexican's value and its price as these two are different measures arrived at by different means. Investors typically determine if Chipotle Mexican is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Chipotle Mexican's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.