Darden Restaurants Valuation
| DDN Stock | EUR 175.35 21.80 14.20% |
At this time, the firm appears to be undervalued. Darden Restaurants shows a prevailing Real Value of €197.07 per share. The current price of the firm is €175.35. Our model computes the value of Darden Restaurants from reviewing the firm fundamentals such as Shares Outstanding of 121.7 M, profit margin of 0.09 %, and Current Valuation of 20.76 B as well as analyzing its technical indicators and probability of bankruptcy.
Undervalued
Today
Please note that Darden Restaurants' price fluctuation is very steady at this time. Calculation of the real value of Darden Restaurants is based on 3 months time horizon. Increasing Darden Restaurants' time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
The fair value of the Darden stock is determined by what a typical buyer is willing to pay for full or partial control of Darden Restaurants. Since Darden Restaurants is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Darden Stock. However, Darden Restaurants' 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 175.35 | Real 197.07 | Hype 175.35 |
The real value of Darden Stock, also known as its intrinsic value, is the underlying worth of Darden Restaurants Company, which is reflected in its stock price. It is based on Darden Restaurants' financial performance, growth prospects, management team, or industry conditions. The intrinsic value of Darden Restaurants' 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, or news.
Estimating the potential upside or downside of Darden Restaurants helps investors to forecast how Darden 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 Darden Restaurants more accurately as focusing exclusively on Darden Restaurants' fundamentals will not take into account other important factors: Darden Restaurants Total Value Analysis
Darden Restaurants is currently estimated to have takeover price of 20.76 B with market capitalization of 16.41 B, debt of 901 M, and cash on hands of 457.3 M. Please note that takeover price may be misleading and is a subject to mistakes in financial statements. We encourage investors to thoroughly investigate all of the Darden Restaurants fundamentals before making investing decisions based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
20.76 B | 16.41 B | 901 M | 457.3 M |
Darden Restaurants Investor Information
About 92.0% of the company shares are held by institutions such as insurance companies. The company has Price/Earnings To Growth (PEG) ratio of 2.25. Darden Restaurants recorded earning per share (EPS) of 6.84. The entity last dividend was issued on the 9th of January 2023. Based on the key indicators related to Darden Restaurants' liquidity, profitability, solvency, and operating efficiency, Darden Restaurants is not in a good financial situation at the moment. It has a very high risk of going through financial straits in January.Darden Restaurants Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Darden Restaurants has an asset utilization ratio of 95.01 percent. This implies that the Company is making €0.95 for each dollar of assets. An increasing asset utilization means that Darden Restaurants is more efficient with each dollar of assets it utilizes for everyday operations.Darden Restaurants Ownership Allocation
Darden Restaurants holds a total of 121.7 Million outstanding shares. The majority of Darden Restaurants outstanding shares are owned by other corporate entities. These outside corporations are usually referred to as non-private investors looking to obtain positions in Darden Restaurants to benefit from reduced commissions. Consequently, institutional investors are subject to a different set of regulations than regular investors in Darden Restaurants. Please pay attention to any change in the institutional holdings of Darden Restaurants as this could imply that something significant has changed or is about to change at the company. 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.Darden Restaurants Profitability Analysis
The company reported the revenue of 9.63 B. Net Income was 952.8 M with profit before overhead, payroll, taxes, and interest of 2 B.Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Darden Restaurants' 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 Darden Restaurants and how it compares across the competition.
About Darden Restaurants Valuation
The stock valuation mechanism determines Darden Restaurants' current worth on a weekly basis. Our valuation model uses a comparative analysis of Darden Restaurants. We calculate exposure to Darden Restaurants's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Darden Restaurants's related companies.Darden Restaurants, Inc., through its subsidiaries, owns and operates full-service restaurants in the United States and Canada. The company was founded in 1968 and is based in Orlando, Florida. Darden Restaurants operates under Restaurants classification in Germany and is traded on Frankfurt Stock Exchange. It employs 185000 people.
8 Steps to conduct Darden Restaurants' Valuation Analysis
Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Darden Restaurants' 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 Darden Restaurants' valuation analysis, follow these 8 steps:- Gather financial information: Obtain Darden Restaurants' financial statements, including balance sheets, income statements, and cash flow statements.
- Determine Darden Restaurants' revenue streams: Identify Darden Restaurants' primary sources of revenue, including products or services offered, target markets, and pricing strategies.
- Analyze market data: Research Darden Restaurants' industry and market trends, including the size of the market, growth rate, and competition.
- Establish Darden Restaurants' growth potential: Evaluate Darden Restaurants' management, business model, and growth potential.
- Determine Darden Restaurants' 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 Darden Restaurants' estimated value.
- Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
Complementary Tools for Darden Stock analysis
When running Darden Restaurants' price analysis, check to measure Darden Restaurants' 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 Darden Restaurants is operating at the current time. Most of Darden Restaurants' value examination focuses on studying past and present price action to predict the probability of Darden Restaurants' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Darden Restaurants' price. Additionally, you may evaluate how the addition of Darden Restaurants to your portfolios can decrease your overall portfolio volatility.
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