Arcos Dorados Holdings (FRA:AD8) Cyclically Adjusted PB Ratio: (As of Sep. 21, 2026)

Author: Vera Yuan Vera Yuan
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Director of Data and Quant Analytics at GuruFocus
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FRA:AD8 Arcos Dorados Holdings Inc FRA:AD8
89 GF Score
Price €6.56
GF Value €8.02
Valuation Modestly Undervalued
! 4 Warning Signs
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What is Arcos Dorados Holdings Cyclically Adjusted PB Ratio?

Shiller PE for Stocks: The True Measure of Stock Valuation


Arcos Dorados Holdings  (FRA:AD8) Cyclically Adjusted PB Ratio Explanation

Compared with the regular PB Ratio, which works poorly for cyclical businesses, the Cyclically Adjusted PB Ratio smoothed out the fluctuations of book value during business cycles. Therefore it is more accurate in reflecting the valuation of the company.

If a company has consistent business performance, the Cyclically Adjusted PB Ratio should give similar results to regular PB Ratio.


Arcos Dorados Holdings Cyclically Adjusted PB Ratio Related Terms


Arcos Dorados Holdings Cyclically Adjusted PB Ratio Historical Data

* Premium members only.

The historical data trend for Arcos Dorados Holdings's Cyclically Adjusted PB Ratio can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Arcos Dorados Holdings Cyclically Adjusted PB Ratio Chart

Arcos Dorados Holdings Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Cyclically Adjusted PB Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 2.56 4.21 6.34 3.70 2.99

Arcos Dorados Holdings Quarterly Data
Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26 Jun26
Cyclically Adjusted PB Ratio Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 3.70 3.15 3.29 3.53 3.52

FRA:AD8 vs WEN, BJRI, CBRL: Cyclically Adjusted PB Ratio Comparison

For the Restaurants subindustry, Arcos Dorados Holdings's Cyclically Adjusted PB Ratio, along with its competitors' market caps and Cyclically Adjusted PB Ratio data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Arcos Dorados Holdings Cyclically Adjusted PB Ratio vs Restaurants Industry

For the Restaurants industry and Consumer Cyclical sector, Arcos Dorados Holdings's Cyclically Adjusted PB Ratio distribution charts can be found below:

* The bar in red indicates where Arcos Dorados Holdings's Cyclically Adjusted PB Ratio falls into.


FRA:AD8
89GF Score
Arcos Dorados Holdings Inc FRA:AD8
Cyclically Adjusted PB Ratio is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Arcos Dorados Holdings Cyclically Adjusted PB Ratio Calculation

Like the Shiller PE Ratio, the Cyclically Adjusted PB Ratio takes the Book Value per Share from the past 10 years, adjusts it for inflation, and then calculates the average. This average is then used for the P/B calculation. Because it considers this 10-year average, it's often referred to as the CAPB Ratio.

The Shiller PE Ratio was first used by professor Robert Shiller to measure the valuation of the overall market. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted PB Ratio.

Arcos Dorados Holdings's Cyclically Adjusted Book per Share for the quarter that ended in Jun. 2026 is calculated as:

For example, Arcos Dorados Holdings's adjusted Book Value per Share data for the three months ended in Jun. 2026 was:

Adj_Book=Book Value per Share/CPI of Jun. 2026 (Change)*Current CPI (Jun. 2026)
=3.458/333.9520*333.9520
=3.458

Current CPI (Jun. 2026) = 333.9520.

Arcos Dorados Holdings Quarterly Data

Book Value per Share CPI Adj_Book
201609 1.408 241.428 1.948
201612 1.561 241.432 2.159
201703 1.836 243.801 2.515
201706 1.689 244.955 2.303
201709 1.720 246.819 2.327
201712 1.932 246.524 2.617
201803 1.764 249.554 2.361
201806 1.607 251.989 2.130
201809 1.666 252.439 2.204
201812 1.652 251.233 2.196
201903 1.577 254.202 2.072
201906 1.614 256.143 2.104
201909 1.657 256.759 2.155
201912 1.816 256.974 2.360
202003 1.152 258.115 1.490
202006 0.716 257.797 0.928
202009 0.640 260.280 0.821
202012 0.781 260.474 1.001
202103 0.667 264.877 0.841
202106 0.715 271.696 0.879
202109 0.766 274.310 0.933
202112 0.924 278.802 1.107
202203 1.023 287.504 1.188
202206 0.973 296.311 1.097
202209 1.174 296.808 1.321
202212 1.443 296.797 1.624
202303 1.553 301.836 1.718
202306 1.759 305.109 1.925
202309 1.985 307.789 2.154
202312 2.221 306.746 2.418
202403 2.138 312.332 2.286
202406 2.084 314.175 2.215
202409 2.184 315.301 2.313
202412 2.335 315.605 2.471
202503 2.271 319.799 2.372
202506 2.352 322.561 2.435
202509 3.015 324.800 3.100
202512 3.121 324.054 3.216
202603 3.202 330.213 3.238
202606 3.458 333.952 3.458

Add all the adjusted book value per share together and divide the count will get our Cyclically Adjusted Book per Share.

Please note that we use the CPI data of the country/region where the company is headquartered. If the CPI data for that country/region is not available, then we will use the CPI data of the United States as default.

Is Arcos Dorados Holdings (FRA:AD8) Overvalued in 2026?

Based on GuruFocus' analysis, Arcos Dorados Holdings stock appears to be undervalued. The current stock price of €6.56 is trading 18.2% below its estimated GF Value™ of €8.02. GuruFocus considers Arcos Dorados Holdings to be Modestly Undervalued.

Key valuation signals for FRA:AD8:

  • Cyclically Adjusted PB Ratio:
  • GF Value™: €8.02 vs. price of €6.56 (18.2% below fair value)
  • GF Score™: 89/100 with 4 warning signs

No single metric tells the full story. See the FRA:AD8 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Arcos Dorados Holdings Business Description

Address Rio Negro 1338, First Floor, Montevideo, URY, 11100
Arcos Dorados Holdings Inc operates McDonald's branded restaurants in various countries and territories in Latin America and the Caribbean. The Company manages its business as distinct geographic segments and its operations are divided into three geographic divisions, as follows: Brazil, the North Latin American division, or NOLAD, which is comprised of Costa Rica, Mexico, Panama, Puerto Rico, Martinique, Guadeloupe, French Guiana and the U.S. Virgin Islands of St. Croix and St. Thomas and the South Latin American division, or SLAD, which is comprised of Argentina, Chile, Ecuador, Peru, Uruguay, Colombia, Venezuela, Trinidad and Tobago, Aruba and Curacao. Its menu includes hamburgers, McNuggets, salad, sandwiches, French fries, and others. It generates maximum revenue from Brazil.
89GF Score

Get the complete analysis for FRA:AD8

Cyclically Adjusted PB Ratio is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€6.56
Price
€8.02
GF Value