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EV-to-FCF is calculated as enterprise value divided by its free cash flow. As of today, Meritage Hospitality Group's Enterprise Value is $569.0 Mil.
Meritage Hospitality Group's Free Cash Flow for the trailing twelve months (TTM) ended in Mar. 2026 was $-16.4 Mil. Therefore, Meritage Hospitality Group's EV-to-FCF for today is -34.62.
The historical rank and industry rank for Meritage Hospitality Group's EV-to-FCF or its related term are showing as below:
MHGU'
s EV-to-FCF Range Over the Past 10 Years
Min: -108.85 Med: -16.94 Max: 285.44
Current: -34.62
During the past 13 years, the highest EV-to-FCF of Meritage Hospitality Group was 285.44. The lowest was -108.85. And the median was -16.94.
MHGU's EV-to-FCF is ranked worse than 100% of 278
companies
in the Restaurants industry
Industry Median: 17.83
vs MHGU: -34.62
EV-to-FCF is a valuation multiple that allows analysts and investors to compare stocks, preferably in the same sector or industry. This important multiple is often used in conjunction with, or as an alternative to, the PE Ratio (TTM) to determine the fair market value of a company.
Meritage Hospitality Group (OTCPK:MHGU) EV-to-FCF Explanation
EV-to-FCF is a valuation multiple that allows analysts and investors to compare stocks, preferably in the same sector or industry. This important multiple is often used in conjunction with, or as an alternative to, the PE Ratio (TTM) to determine the fair market value of a company.
Meritage Hospitality Group's PE Ratio (TTM) for today is calculated as:
Meritage Hospitality Group's share price for today is $2.3034.
Meritage Hospitality Group's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was $-5.800.
* 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.
Enterprise Value is used because it is a more complete measure in reflecting how much an investor pays when buying a company. Free Cash Flow is an important financial metric because it represents the actual amount of cash at a company's disposal. Companies with a low EV-to-FCF ratio, combined with a strong balance sheet are generally considered as undervalued.
Meritage Hospitality Group EV-to-FCF Related Terms
Meritage Hospitality Group EV-to-FCF Historical Data
* 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.
For the Restaurants subindustry, Meritage Hospitality Group's EV-to-FCF, along with its competitors' market caps and EV-to-FCF 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.
Meritage Hospitality Group EV-to-FCF vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, Meritage Hospitality Group's EV-to-FCF distribution charts can be found below:
* The bar in red indicates where Meritage Hospitality Group's EV-to-FCF falls into.
Meritage Hospitality Group's current Enterprise Value is $569.0 Mil.
Meritage Hospitality Group's Free Cash Flow for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was $-16.4 Mil.
* 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.
Meritage Hospitality Group (MHGU) has a EV-to-FCF of -34.62 as of Jul. 15, 2026. EV to FCF ratio is the company's enterprise value divided by free cash flow. View historical data on Meritage Hospitality Group and its competitors. According to the industry distribution chart, Meritage Hospitality Group ranks #999999 out of 278 companies in the Restaurants industry.
Is Meritage Hospitality Group's EV-to-FCF too high?
Meritage Hospitality Group's current EV-to-FCF is -34.62. Based on the distribution chart, Meritage Hospitality Group ranks #999999 out of 278 companies in the Restaurants industry, which is in the bottom quartile relative to peers. Overall, Meritage Hospitality Group has a GF Score™ of 51/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Meritage Hospitality Group's EV-to-FCF compare to ARKR and NROM?
According to the Restaurants industry distribution chart, Meritage Hospitality Group ranks #999999 out of 278 companies for EV-to-FCF. This places Meritage Hospitality Group in the lower half of its industry. The industry median EV-to-FCF is 17.83. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good EV-to-FCF for a Restaurants company?
The median EV-to-FCF among Restaurants companies is 17.83, based on 278 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-FCF significantly above this median, while those in the bottom quartile fall well below. However, EV-to-FCF should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high EV-to-FCF mean?
A high EV-to-FCF can signal that a stock is expensive relative to its fundamentals. EV to FCF ratio is the company's enterprise value divided by free cash flow. View historical data on Meritage Hospitality Group and its competitors. For the Restaurants industry, the median EV-to-FCF is 17.83 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Meritage Hospitality Group's current EV-to-FCF is -34.62. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Meritage Hospitality Group stock overvalued right now?
Based on GuruFocus' analysis, Meritage Hospitality Group (MHGU) is currently considered Possible Value Trap. The stock's GF Value™ is $17.20, compared to a current price of $2.30 — trading 86.6% below its estimated fair value. The current EV-to-FCF is -34.62. Meritage Hospitality Group's overall GF Score™ is 51/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EV-to-FCF calculated?
EV-to-FCF is calculated from a company's financial statements. For Meritage Hospitality Group (MHGU), the current EV-to-FCF is -34.62 as of Jul. 15, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Meritage Hospitality Group (MHGU) Overvalued in 2026?
Based on GuruFocus' analysis, Meritage Hospitality Group stock appears to be undervalued.
The current stock price of $2.30 is trading 86.6% below its estimated GF Value™ of $17.20.
GuruFocus considers Meritage Hospitality Group to be Possible Value Trap.
Key valuation signals for MHGU:
EV-to-FCF: -34.62
GF Value™: $17.20 vs. price of $2.30 (86.6% below fair value)
No single metric tells the full story. See the MHGU stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Meritage Hospitality Group Inc is engaged in operating quick-service and casual dining restaurants across various states in the United States. It operates Wendy's quick-service restaurants across various states under franchise agreements with its franchisor. It also operates independent restaurants under three concepts throughout Michigan, which include Morning Belle restaurants, Stan's Tacos restaurant, and Blue Porch Bar & Grill restaurant. It is focused on the future development and long-term growth of its Morning Belle brand.
51GF Score
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