Darden Stock Valuation

DRI
 Stock
  

USD 130.76  1.61  1.22%   

Do you want to know what the current value of Darden Restaurants is 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 Darden Restaurants, is its stock price multiplied by the total number of shares outstanding, calculating Darden Restaurants' enterprise value requires a different approach. It uses Darden Restaurants' balance sheet items such as long-term debt, the book value of the preferred stock, minority interest, and other important financials.
The current Tangible Asset Value is estimated to increase to about 8.6 B, while Free Cash Flow is projected to decrease to roughly 603.4 M.
Darden Restaurants shows a prevailing Real Value of $141.33 per share. The current price of the firm is $130.76. At this time, the firm appears to be undervalued. Our model computes the value of Darden Restaurants from reviewing the firm fundamentals such as Profit Margin of 9.89 %, shares outstanding of 122.58 M, and Current Valuation of 21.83 B as well as analyzing its technical indicators and Probability Of Bankruptcy. In general, we advise locking in undervalued instruments and disposing overvalued instruments since, at some point, asset prices and their ongoing real values will submerge.
  
Darden Restaurants 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 Darden Restaurants's management style, its c-level domain expertise and tenure, its overall leadership history as well as current capital structure, and future earnings potential.

Darden Most Recent Valuation Data

Price Book
7.36
Price Sales
1.71
Forward Annual Dividend Yield
0.0366
EBITDA
1.5 B
Dividend Share
4.4
Ex Dividend Date
2022-07-07
Undervalued
Today 130.76
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.
Our valuation method for Darden Restaurants is useful when determining the fair value of the Darden stock, which is usually 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.
119.13
Downside
141.33
Real Value
143.48
Upside
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:
Earnings
Estimates (13)
LowProjected EPSHigh
7.457.577.89
Details
Hype
Prediction
LowEstimated ValueHigh
129.42131.57133.72
Details
Potential
Annual Dividend
LowIncome Per ShareHigh
2.632.752.88
Details
19 Analysts
Consensus
LowTarget PriceHigh
147.00165.60185.00
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 Darden Restaurants' intrinsic value based on its ongoing forecasts of Darden Restaurants' financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Darden Restaurants' closest peers. When choosing an evaluation method for Darden Restaurants, 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.

Darden Valuation Drivers Correlation

Many accounts on the financial statements of Darden Restaurants are highly interrelated and sometimes correlated. Consequently, when conducting Darden'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 Darden
Click cells to compare fundamentals

Darden Valuation Trend

Knowing Darden Restaurants' actual value is paramount for traders to make sound investment determinations. Darden Restaurants' real value is not only important for the investor to make better decisions but also for a more accurate overall view of Darden Restaurants' financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both Darden Restaurants' 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.

Darden Market Cap

Darden Restaurants is one of the top stocks in market capitalization category among related companies. Market capitalization of Restaurants industry is currently estimated at about 1.24 Trillion. Darden Restaurants claims roughly 16.21 Billion in market capitalization contributing just under 2% to equities listed under Restaurants industry.
Capitalization  Workforce  Total debt  Valuation  Revenue

Darden Restaurants Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining Darden Restaurants's current stock value. Our valuation model uses many indicators to compare Darden Restaurants value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Darden Restaurants competition to find correlations between indicators driving Darden Restaurants's intrinsic value. More Info.
Darden Restaurants is one of the top stocks in five year return category among related companies. It is one of the top stocks in price to earning category among related companies reporting about  6.98  of Price to Earning per Five Year Return. The current Price to Earnings Ratio is estimated to decrease to -85.18. The current Earnings Before Interest Taxes and Depreciation Amortization EBITDA is estimated to decrease to about 935.6 M. Comparative valuation analysis is a catch-all model that can be used if you cannot value Darden Restaurants by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Darden Restaurants' 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 Darden Restaurants' 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 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 the current worth of Darden Restaurants on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Darden Restaurants. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Darden Restaurants based exclusively on its fundamental and basic technical indicators. By analyzing Darden Restaurants'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 Darden Restaurants'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 Darden Restaurants. We calculate exposure to Darden Restaurants's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Darden Restaurants's related companies.
Fiscal Year End
May
Industry
Restaurants
Concentration
Restaurants
Full Time Employees
179 K
Service Category
Hotels, Restaurants & Leisure
Employer Id Number
59-3305930
Last ReportedProjected for 2022
Gross ProfitB1.8 B
Profit Margin 0.1  0.0484 

Darden Restaurants Quarterly Enterprise Value

19.91 Billion

Darden Restaurants' stock price is the clearest measure of market expectations about its performance. Without stock valuation, investors cannot independently discern whether Darden Restaurants' value is low or high relative to the company's performance and growth projections. Determining the market value of Darden Restaurants can be done in different ways, such as multiplying its stock price by its outstanding shares.
A single share of Darden Restaurants represents a small ownership stake in the entity. As a stockholder of Darden, 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.

Darden Restaurants Dividends Analysis For Valuation

The current Dividend Yield is estimated to increase to 0.0363, while Payment of Dividends and Other Cash Distributions is forecasted to increase to (465.9 M). . The current Accumulated Retained Earnings Deficit is estimated to increase to about 61.9 M, while Earning Before Interest and Taxes EBIT is projected to decrease to roughly 554.4 M.
Last ReportedProjected for 2022
Payment of Dividends and Other Cash Distributions-563 M-465.9 M
Dividend Yield 0.035  0.0363 
Dividends per Basic Common Share 4.40  3.71 
There are various types of dividends Darden Restaurants 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 Darden 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 Darden Restaurants directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Darden pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Darden Restaurants by the value of the dividends paid out.

Darden Restaurants 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 Darden Restaurants 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.
Quick Ratio0.27
Earnings Quarterly Growth-23.60%
Revenue Growth14.20%
Payout Ratio59.46%
Enterprise Value To Ebitda14.47
Earnings Growth-19.40%
Enterprise Value To Revenue2.27

Darden Restaurants Current Valuation Indicators

Valuation refers to the process of determining the present value of Darden Restaurants and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Darden we look at many different elements of the entity such as Darden's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Darden Restaurants' 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 Darden Restaurants' 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 Darden Restaurants, 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 Darden Restaurants' 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 Darden Restaurants' worth.
Continue to Investing Opportunities. Note that the Darden Restaurants information on this page should be used as a complementary analysis to other Darden Restaurants' statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.

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 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.
Technical Analysis
Check basic technical indicators and analysis based on most latest market data
Go
Portfolio Anywhere
Track or share privately all of your investments from the convenience of any device
Go
Content Syndication
Quickly integrate customizable finance content to your own investment portal
Go
Fund Screener
Find actively-traded funds from around the world traded on over 30 global exchanges
Go
My Watchlist Analysis
Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like
Go
Money Managers
Screen money managers from public funds and ETFs managed around the world
Go
Money Flow Index
Determine momentum by analyzing Money Flow Index and other technical indicators
Go
Cryptocurrency Center
Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency
Go
Fundamental Analysis
View fundamental data based on most recent published financial statements
Go
Is Darden Restaurants' 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 Darden Restaurants. If investors know Darden 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 Darden Restaurants 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
-0.19
Market Capitalization
16.5 B
Quarterly Revenue Growth YOY
0.14
Return On Assets
0.0697
Return On Equity
0.38
The market value of Darden Restaurants is measured differently than its book value, which is the value of Darden that is recorded on the company's balance sheet. Investors also form their own opinion of Darden Restaurants' value that differs from its market value or its book value, called intrinsic value, which is Darden Restaurants' 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 Darden Restaurants' market value can be influenced by many factors that don't directly affect Darden Restaurants' 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 Darden Restaurants' value and its price as these two are different measures arrived at by different means. Investors typically determine Darden Restaurants value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Darden Restaurants' 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.