Restaurant Brands Valuation
| QSR Stock | USD 73.62 0.73 0.98% |
At this time, the company appears to be undervalued. Restaurant Brands holds a recent Real Value of $77.33 per share. The prevailing price of the company is $73.62. Our model determines the value of Restaurant Brands from analyzing the company fundamentals such as Operating Margin of 0.27 %, shares outstanding of 313.35 M, and Return On Equity of 0.38 as well as examining its technical indicators and probability of bankruptcy. In general, most investors support buying undervalued entities and selling overvalued entities since, at some point, asset prices and their ongoing real values will merge together. Key fundamental drivers impacting Restaurant Brands' valuation include:
Price Book 7.7922 | Enterprise Value 38.5 B | Enterprise Value Ebitda 16.0123 | Price Sales 4.5654 | Forward PE 15.0602 |
Undervalued
Today
Please note that Restaurant Brands' price fluctuation is very steady at this time. Calculation of the real value of Restaurant Brands is based on 3 months time horizon. Increasing Restaurant Brands' time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Restaurant Brands International is useful when determining the fair value of the Restaurant stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Restaurant Brands. Since Restaurant Brands is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Restaurant Stock. However, Restaurant Brands' 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 73.62 | Real 77.33 | Target 79.68 | Hype 73.61 | Naive 77.79 |
The real value of Restaurant Stock, also known as its intrinsic value, is the underlying worth of Restaurant Brands Company, which is reflected in its stock price. It is based on Restaurant Brands' financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of Restaurant Brands' 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 Restaurant Brands' 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 Restaurant Brands International helps investors to forecast how Restaurant 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 Restaurant Brands more accurately as focusing exclusively on Restaurant Brands' 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 Restaurant Brands' intrinsic value based on its ongoing forecasts of Restaurant Brands' financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Restaurant Brands' closest peers. When choosing an evaluation method for Restaurant Brands, 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.
Restaurant Brands Investments |
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Restaurant Valuation Trend
Knowing Restaurant Brands' actual value is paramount for traders to make sound investment determinations. Restaurant Brands' real value is not only important for the investor to make better decisions but also for a more accurate overall view of Restaurant Brands' financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both Restaurant Brands' 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.
Restaurant Valuation Data Drivers
Restaurant valuation ratios help to determine how cheap or expensive it is, compared to its peers or based on some benchmark measure of value for a given date. A typical valuation ratio shows the difference between the cost of Restaurant equity instrument and the benefits of owning shares of Restaurant Brands International.
View More FundamentalsRestaurant Market Cap
Restaurant Brands International is rated third in market capitalization category among related companies. Market capitalization of Consumer Discretionary industry is at this time estimated at about 224.39 Billion. Restaurant Brands retains roughly 33.12 Billion in market capitalization claiming about 15% of stocks in Consumer Discretionary industry.Restaurant Brands Valuation Ratios as Compared to Competition
Comparative valuation techniques use various fundamental indicators to help in determining Restaurant Brands's current stock value. Our valuation model uses many indicators to compare Restaurant Brands value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Restaurant Brands competition to find correlations between indicators driving Restaurant Brands's intrinsic value. More Info.Restaurant Brands International is rated below average in price to earning category among related companies. It is rated fourth in price to book category among related companies fabricating about 0.20 of Price To Book per Price To Earning. The ratio of Price To Earning to Price To Book for Restaurant Brands International is roughly 5.02 . As of 04/25/2024, Price To Book Ratio is likely to drop to 5.58. Comparative valuation analysis is a catch-all model that can be used if you cannot value Restaurant Brands by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Restaurant Brands' 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 Restaurant Brands' 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 Restaurant Brands' 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 Restaurant Brands and how it compares across the competition.
About Restaurant Brands Valuation
The stock valuation mechanism determines the current worth of Restaurant Brands International on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Restaurant Brands International. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Restaurant Brands based exclusively on its fundamental and basic technical indicators. By analyzing Restaurant Brands'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 Restaurant Brands'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 Restaurant Brands. We calculate exposure to Restaurant Brands's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Restaurant Brands's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 4.1 B | 4.4 B | |
| Pretax Profit Margin | 0.21 | 0.14 | |
| Operating Profit Margin | 0.31 | 0.26 | |
| Net Profit Margin | 0.17 | 0.12 | |
| Gross Profit Margin | 0.58 | 0.58 |
Restaurant Brands Quarterly Retained Earnings |
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8 Steps to conduct Restaurant Brands' Valuation Analysis
Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Restaurant Brands' 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 Restaurant Brands' valuation analysis, follow these 8 steps:- Gather financial information: Obtain Restaurant Brands' financial statements, including balance sheets, income statements, and cash flow statements.
- Determine Restaurant Brands' revenue streams: Identify Restaurant Brands' primary sources of revenue, including products or services offered, target markets, and pricing strategies.
- Analyze market data: Research Restaurant Brands' industry and market trends, including the size of the market, growth rate, and competition.
- Establish Restaurant Brands' growth potential: Evaluate Restaurant Brands' management, business model, and growth potential.
- Determine Restaurant Brands' 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 Restaurant Brands' estimated value.
- Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
A single share of Restaurant Brands represents a small ownership stake in the entity. As a stockholder of Restaurant, 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.
Restaurant Brands Dividends Analysis For Valuation
At this time, Restaurant Brands' Dividends Paid is relatively stable compared to the past year. As of 04/25/2024, Dividend Paid And Capex Coverage Ratio is likely to grow to 2.24, while Dividend Yield is likely to drop 0.03. . At this time, Restaurant Brands' Retained Earnings are relatively stable compared to the past year. As of 04/25/2024, Price Earnings Ratio is likely to grow to 39.18, while Retained Earnings Total Equity is likely to drop slightly above 678.7 M.
| Last Reported | Projected for Next Year | ||
| Dividends Paid | 1 B | 1.1 B | |
| Dividend Yield | 0.04 | 0.03 | |
| Dividend Payout Ratio | 0.85 | 0.64 | |
| Dividend Paid And Capex Coverage Ratio | 1.52 | 2.24 |
There are various types of dividends Restaurant Brands 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 Restaurant 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 Restaurant Brands International directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Restaurant pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Restaurant Brands by the value of the dividends paid out.
Restaurant Brands 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 Restaurant Brands 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 | 456 M | |
| Quarterly Earnings Growth Y O Y | 1.185 | |
| Forward Price Earnings | 15.0602 |
Restaurant Brands Current Valuation Indicators
Valuation refers to the process of determining the present value of Restaurant Brands International and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Restaurant we look at many different elements of the entity such as Restaurant's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Restaurant Brands' 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 Restaurant Brands' 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 Restaurant Brands, 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 Restaurant Brands' 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 Restaurant Brands' worth.When determining whether Restaurant Brands is a strong investment it is important to analyze Restaurant Brands' 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 Restaurant Brands' future performance. For an informed investment choice regarding Restaurant Stock, refer to the following important reports: Check out Your Equity Center to better understand how to build diversified portfolios, which includes a position in Restaurant Brands International. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in state. You can also try the Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Complementary Tools for Restaurant Stock analysis
When running Restaurant Brands' price analysis, check to measure Restaurant Brands' 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 Restaurant Brands is operating at the current time. Most of Restaurant Brands' value examination focuses on studying past and present price action to predict the probability of Restaurant Brands' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Restaurant Brands' price. Additionally, you may evaluate how the addition of Restaurant Brands to your portfolios can decrease your overall portfolio volatility.
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Is Restaurant Brands' 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 Restaurant Brands. If investors know Restaurant 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 Restaurant Brands 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 1.185 | Dividend Share 2.2 | Earnings Share 3.76 | Revenue Per Share 22.506 | Quarterly Revenue Growth 0.078 |
The market value of Restaurant Brands is measured differently than its book value, which is the value of Restaurant that is recorded on the company's balance sheet. Investors also form their own opinion of Restaurant Brands' value that differs from its market value or its book value, called intrinsic value, which is Restaurant Brands' 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 Restaurant Brands' market value can be influenced by many factors that don't directly affect Restaurant Brands' 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 Restaurant Brands' value and its price as these two are different measures arrived at by different means. Investors typically determine if Restaurant Brands is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Restaurant Brands' 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.