Arcos Dorados Holdings Stock Current Valuation
| ARCO Stock | USD 8.17 0.08 0.99% |
Valuation analysis of Arcos Dorados Holdings helps investors to measure Arcos Dorados' intrinsic value by examining its available valuation indicators, including the cash flow records, the balance sheet account changes and income statement patterns. At this time, Arcos Dorados' Enterprise Value Over EBITDA is very stable compared to the past year. As of the 3rd of December 2024, Enterprise Value Multiple is likely to grow to 10.52, while Enterprise Value is likely to drop about 3 B. Fundamental drivers impacting Arcos Dorados' valuation include:
Price Book 3.3273 | Enterprise Value 3.3 B | Enterprise Value Ebitda 7.2805 | Price Sales 0.3831 | Forward PE 14.5138 |
Undervalued
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 8.17 | Real 9.55 | Target 13.24 | Hype 8.18 | Naive 7.72 |
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: Arcos Dorados Holdings Company Current Valuation Analysis
Arcos Dorados' Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.
Current Arcos Dorados Current Valuation | 3.3 B |
Most of Arcos Dorados' fundamental indicators, such as Current Valuation, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, Arcos Dorados Holdings is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.
Arcos Current Valuation Driver Correlations
Understanding the fundamental principles of building solid financial models for Arcos Dorados is extremely important. It helps to project a fair market value of Arcos Stock properly, considering its historical fundamentals such as Current Valuation. Since Arcos Dorados' main accounts across its financial reports are all linked and dependent on each other, it is essential to analyze all possible correlations between related accounts. However, instead of reviewing all of Arcos Dorados' historical financial statements, investors can examine the correlated drivers to determine its overall health. This can be effectively done using a conventional correlation matrix of Arcos Dorados' interrelated accounts and indicators.
Click cells to compare fundamentals
Arcos Current Valuation Historical Pattern
Today, most investors in Arcos Dorados Stock are looking for potential investment opportunities by analyzing not only static indicators but also various Arcos Dorados' growth ratios. Consistent increases or drops in fundamental ratios usually indicate a possible pattern that can be successfully translated into profits. However, when comparing two companies, knowing each company's current valuation growth rates may not be enough to decide which company is a better investment. That's why investors frequently use a static breakdown of Arcos Dorados current valuation as a starting point in their analysis.
Arcos Dorados Current Valuation |
| Timeline |
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
| Competition |
In accordance with the recently published financial statements, Arcos Dorados Holdings has a Current Valuation of 3.3 B. This is 81.78% lower than that of the Hotels, Restaurants & Leisure sector and 67.29% lower than that of the Consumer Discretionary industry. The current valuation for all United States stocks is 80.16% higher than that of the company.
Arcos Current Valuation Peer Comparison
Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses Arcos Dorados' direct or indirect competition against its Current Valuation to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of Arcos Dorados could also be used in its relative valuation, which is a method of valuing Arcos Dorados by comparing valuation metrics of similar companies.Arcos Dorados is currently under evaluation in current valuation category among its peers.
Arcos Dorados Current Valuation Drivers
We derive many important indicators used in calculating different scores of Arcos Dorados from analyzing Arcos Dorados' financial statements. These drivers represent accounts that assess Arcos Dorados' ability to generate profits relative to its revenue, operating costs, and shareholders' equity. Below are some of Arcos Dorados' important valuation drivers and their relationship over time.
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 (projected) | ||
| Market Cap | 1.7B | 1.0B | 1.2B | 1.8B | 2.7B | 2.1B | |
| Enterprise Value | 3.1B | 2.5B | 2.5B | 3.1B | 4.2B | 3.0B |
Arcos Dorados ESG Sustainability
Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, Arcos Dorados' sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Arcos Dorados' managers, analysts, and investors.Environmental | Governance | Social |
Arcos Fundamentals
| Return On Equity | 0.39 | ||||
| Return On Asset | 0.0693 | ||||
| Profit Margin | 0.04 % | ||||
| Operating Margin | 0.07 % | ||||
| Current Valuation | 3.3 B | ||||
| Shares Outstanding | 130.66 M | ||||
| Shares Owned By Insiders | 3.12 % | ||||
| Shares Owned By Institutions | 45.19 % | ||||
| Number Of Shares Shorted | 4.52 M | ||||
| Price To Earning | 11.52 X | ||||
| Price To Book | 3.33 X | ||||
| Price To Sales | 0.38 X | ||||
| Revenue | 4.33 B | ||||
| Gross Profit | 492.61 M | ||||
| EBITDA | 459.66 M | ||||
| Net Income | 181.27 M | ||||
| Cash And Equivalents | 289.42 M | ||||
| Cash Per Share | 1.37 X | ||||
| Total Debt | 1.69 B | ||||
| Debt To Equity | 7.40 % | ||||
| Current Ratio | 0.86 X | ||||
| Book Value Per Share | 2.45 X | ||||
| Cash Flow From Operations | 381.96 M | ||||
| Short Ratio | 3.59 X | ||||
| Earnings Per Share | 0.69 X | ||||
| Price To Earnings To Growth | 2.15 X | ||||
| Target Price | 13.0 | ||||
| Beta | 1.16 | ||||
| Market Capitalization | 1.72 B | ||||
| Total Asset | 3.02 B | ||||
| Retained Earnings | 566.19 M | ||||
| Working Capital | (236.39 M) | ||||
| Current Asset | 379 M | ||||
| Current Liabilities | 577.67 M | ||||
| Annual Yield | 0.03 % | ||||
| Net Asset | 3.02 B |
About Arcos Dorados Fundamental Analysis
The Macroaxis Fundamental Analysis modules help investors analyze Arcos Dorados Holdings's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Arcos Dorados using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Arcos Dorados Holdings based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
Pair Trading with Arcos Dorados
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Arcos Dorados position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Arcos Dorados will appreciate offsetting losses from the drop in the long position's value.Moving against Arcos Stock
| 0.51 | LNW | Light Wonder | PairCorr |
| 0.45 | LIND | Lindblad Expeditions | PairCorr |
| 0.42 | GAMB | Gambling Group | PairCorr |
| 0.38 | BH | Biglari Holdings | PairCorr |
| 0.33 | DRI | Darden Restaurants | PairCorr |
The ability to find closely correlated positions to Arcos Dorados could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Arcos Dorados when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Arcos Dorados - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Arcos Dorados Holdings to buy it.
The correlation of Arcos Dorados is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Arcos Dorados moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Arcos Dorados Holdings moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Arcos Dorados can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Check out Arcos Dorados Piotroski F Score and Arcos Dorados Altman Z Score analysis. You can also try the Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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.