Chipotle Stock Valuation

CMG
 Stock
  

USD 1,508  62.21  3.96%   

What is the value of Chipotle Mexican today? Calculating the true value of any business is not as easy as it may seem. While the market cap of a public entity, such as Chipotle Mexican, is its stock price multiplied by the total number of shares outstanding, calculating Chipotle Mexican's enterprise value requires a different approach. It uses Chipotle Mexican's balance sheet items such as long-term debt, the book value of the preferred stock, minority interest, and other important financials.
Chipotle Mexican Enterprise Value is projected to increase significantly based on the last few years of reporting. The past year's Enterprise Value was at 51.93 Billion.
Chipotle Mexican Grill shows a prevailing Real Value of $1744.54 per share. The current price of the firm is $1508.4. At this time, the firm appears to be undervalued. Our model approximates the value of Chipotle Mexican Grill from analyzing the firm fundamentals such as Return On Equity of 0.35 %, profit margin of 0.1 %, and Current Valuation of 47.43 B as well as examining its technical indicators and Probability Of Bankruptcy. In general, we favor purchasing undervalued instruments and exiting overvalued instruments since, at some point, asset prices and their ongoing real values will blend.
  
Chipotle Mexican Valuation Module provides a unique way to ballpark how much the company is worth today. It is done using both, our quantitative analysis of the company fundamentals as well as its intrinsic market price estimation to project the real value. We also take into consideration other essential factors such as Chipotle Mexican's management style, its c-level domain expertise and tenure, its overall leadership history as well as current capital structure, and future earnings potential.

Chipotle Most Recent Valuation Data

Beta
1.23
change Receivables
-1.7 M
Fiscal Year End
December
property Plant And Equipment Net
4.9 B
Enterprise Value
47.4 B
current Deferred Revenue
156.4 M
Undervalued
Today 1,508
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.
1,745
Real Value
1,747
Upside
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:
Earnings
Estimates (13)
LowProjected EPSHigh
24.7225.0225.27
Details
Hype
Prediction
LowEstimated ValueHigh
1,5121,5141,516
Details
Naive
Forecast
LowNext ValueHigh
1,5801,5821,584
Details
23 Analysts
Consensus
LowTarget PriceHigh
1,7251,9512,600
Details
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

574.01 Million

Chipotle Valuation Drivers Correlation

Many accounts on the financial statements of Chipotle Mexican Grill are highly interrelated and sometimes correlated. Consequently, when conducting Chipotle's valuation analysis, one should examine all of the accounts reported to obtain a complete picture of its financial situation. We provide a unique feature to present a conventional correlation table purposely composed against different valuation-related drivers of Chipotle
Click cells to compare fundamentals

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 number one stock in market capitalization category among related companies. Market capitalization of Consumer Discretionary industry is currently estimated at about 3.63 Trillion. Chipotle Mexican claims roughly 43.54 Billion in market capitalization contributing just under 2% to stocks in Consumer Discretionary industry.
Capitalization  Revenue  Workforce  Valuation  Total debt

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 number one stock in price to sales category among related companies. It is number one stock in net asset category among related companies making up about  1,285,794,519  of Net Asset per Price to Sales. As of December 6, 2022, Average Assets is expected to decline to about 5.1 B. In addition to that, Tangible Asset Value is expected to decline to about 5.3 B. 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.
Fiscal Year End
December
Industry
Restaurants
Concentration
Restaurants
Full Time Employees
100 K
Service Category
Hotels, Restaurants & Leisure
Employer Id Number
84-1219301
Last ReportedProjected for 2022
Gross Profit1.7 B1.5 B
Profit Margin 8.65  8.90 

Chipotle Mexican Valuation Growth Rates

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.
Quarterly Earnings Growth Y O Y0.281

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.
Continue to Trending Equities. You can also try Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.

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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 YOY
0.28
Market Capitalization
43.5 B
Quarterly Revenue Growth YOY
0.14
Return On Assets
0.0974
Return On Equity
0.35
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 Chipotle Mexican value 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.