Arcos Dorados Valuation
| ARCO Stock | USD 8.02 0.08 0.99% |
At this time, the firm appears to be overvalued. Arcos Dorados Holdings shows a prevailing Real Value of $6.5 per share. The current price of the firm is $8.02. Our model approximates the value of Arcos Dorados Holdings from analyzing the firm fundamentals such as return on equity of 0.39, and Profit Margin of 0.04 % as well as examining its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Arcos Dorados' valuation include:
Price Book 3.3314 | Enterprise Value 3.3 B | Enterprise Value Ebitda 7.2852 | Price Sales 0.376 | Forward PE 14.5138 |
Overvalued
Today
Please note that Arcos Dorados' price fluctuation is somewhat reliable at this time. Calculation of the real value of Arcos Dorados Holdings is based on 3 months time horizon. Increasing Arcos Dorados' time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Since Arcos Dorados is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Arcos Stock. However, Arcos Dorados' 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 8.02 | Real 6.5 | Target 13.24 | Hype 8.02 |
The intrinsic value of Arcos Dorados' 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 Arcos Dorados' 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 Arcos Dorados Holdings helps investors to forecast how Arcos 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 Arcos Dorados more accurately as focusing exclusively on Arcos Dorados' 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 Arcos Dorados' intrinsic value based on its ongoing forecasts of Arcos Dorados' financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Arcos Dorados' closest peers.
Arcos Dorados Cash |
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Arcos Valuation Trend
Knowing Arcos Dorados' actual value is paramount for traders when making sound investment determinations. Using both Arcos Dorados' enterprise value as well as its market capitalization is the best way to estimate the value of the company and is usually enough for investors to make market timing decisions.
Arcos Dorados Total Value Analysis
Arcos Dorados Holdings is presently forecasted to have valuation of 3.3 B with market capitalization of 1.69 B, debt of 1.69 B, and cash on hands of 289.42 M. Please note that valuation may be misleading and is a subject to auditing or accounting errors. We encourage investors to vigilantly validate all of the Arcos Dorados fundamentals before making equity appraisal based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
3.3 B | 1.69 B | 1.69 B | 289.42 M |
Arcos Dorados Investor Information
About 45.0% of the company shares are held by institutions such as insurance companies. The book value of Arcos Dorados was presently reported as 2.45. The company has Price/Earnings To Growth (PEG) ratio of 2.15. Arcos Dorados Holdings last dividend was issued on the 20th of December 2024. The entity had 993:979 split on the 13th of July 2021. Based on the key indicators related to Arcos Dorados' liquidity, profitability, solvency, and operating efficiency, Arcos Dorados Holdings is performing exceptionally good at the present time. It has a great chance to report excellent financial results in January.| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
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| Total Cash From Operating Activities | 238.4 M | 382 M |
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Arcos Dorados Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Arcos Dorados has an asset utilization ratio of 143.48 percent. This suggests that the Company is making $1.43 for each dollar of assets. An increasing asset utilization means that Arcos Dorados Holdings is more efficient with each dollar of assets it utilizes for everyday operations.Arcos Dorados Ownership Allocation
Arcos Dorados holds a total of 130.66 Million outstanding shares. 30% of Arcos Dorados Holdings outstanding shares are owned by other corporate entities. Institutional investors are typically referred to investors that purchase positions in a given stock to benefit from reduced commissions. Consequently, institutional investors are subject to different rules and regulations than regular investors. Please look out for any change in current institutional holding as this could mean something significant has changed at the company or is about to change. Please note that no matter how many assets the company secures, if the real value of the firm is less than the current market value, you may not be able to make money on it.Arcos Dorados Profitability Analysis
The company reported the previous year's revenue of 4.33 B. Net Income was 181.27 M with profit before overhead, payroll, taxes, and interest of 492.61 M.Arcos Dorados Past Distributions to stockholders
About Arcos Dorados Valuation
We use absolute and relative valuation methodologies to arrive at the intrinsic value of Arcos Dorados Holdings. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Arcos Dorados Holdings based exclusively on its fundamental and basic technical indicators. By analyzing Arcos Dorados's financials, quarterly and monthly indicators, and their related drivers, we attempt to find the most accurate representation of Arcos Dorados's intrinsic value. As compared to an absolute model, our relative valuation model uses a comparative analysis of Arcos Dorados. We calculate exposure to Arcos Dorados's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Arcos Dorados's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 597.1 M | 642.2 M | |
| Pretax Profit Margin | 0.06 | 0.07 | |
| Operating Profit Margin | 0.07 | 0.06 | |
| Net Profit Margin | 0.04 | 0.04 | |
| Gross Profit Margin | 0.14 | 0.14 |
Arcos Dorados Quarterly Retained Earnings |
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A single share of Arcos Dorados represents a small ownership stake in the entity. As a stockholder of Arcos, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.
Arcos Dorados Dividends Analysis For Valuation
As of the 11th of December 2024, Dividend Yield is likely to grow to 0.02, while Dividends Paid is likely to drop about 22.1 M. . At this time, Arcos Dorados' Earnings Yield is very stable compared to the past year. As of the 11th of December 2024, Price Earnings Ratio is likely to grow to 23.89, while Retained Earnings are likely to drop about 382.2 M.
| Last Reported | Projected for Next Year | ||
| Dividends Paid | 40 M | 22.1 M | |
| Dividend Yield | 0.01 | 0.02 | |
| Dividend Payout Ratio | 0.22 | 0.22 | |
| Dividend Paid And Capex Coverage Ratio | 0.95 | 0.89 |
There are various types of dividends Arcos Dorados can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of Arcos shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from Arcos Dorados Holdings directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Arcos pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Arcos Dorados by the value of the dividends paid out.
Arcos Dorados 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.
| Common Stock Shares Outstanding | 210.6 M | |
| Quarterly Earnings Growth Y O Y | -0.077 | |
| Forward Price Earnings | 14.5138 |
Arcos Dorados Current Valuation Indicators
Arcos Dorados' valuation analysis is 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 Arcos Dorados' 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 Arcos Dorados, 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 Arcos Dorados' 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 Arcos Dorados' worth.When determining whether Arcos Dorados Holdings offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Arcos Dorados' financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Arcos Dorados Holdings Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Arcos Dorados Holdings Stock: Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Arcos Dorados Holdings. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in main economic indicators. You can also try the Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Is Hotels, Restaurants & Leisure space 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 Arcos Dorados. If investors know Arcos 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 Arcos Dorados 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 (0.08) | Earnings Share 0.69 | Revenue Per Share 21.328 | Quarterly Revenue Growth 0.068 | Return On Assets 0.0693 |
The market value of Arcos Dorados Holdings is measured differently than its book value, which is the value of Arcos that is recorded on the company's balance sheet. Investors also form their own opinion of Arcos Dorados' value that differs from its market value or its book value, called intrinsic value, which is Arcos Dorados' 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 Arcos Dorados' market value can be influenced by many factors that don't directly affect Arcos Dorados' 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 Arcos Dorados' value and its price as these two are different measures arrived at by different means. Investors typically determine if Arcos Dorados is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Arcos Dorados' 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.