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Chipotle Mexican GrillCMG +12.50%84 Graham Number is $6.55 as of Jun. 2026, which is 2% above its 10-year median of 6.44. GuruFocus rates CMG with a GF Score™ of 84/100 and a GF Value™ of $60.43 (Significantly Undervalued). The stock has 1 warning sign investors should review. Among 208 Restaurants companies, Chipotle Mexican Grill ranks worse than 86.54% on this metric.
Graham Number is a figure that measures a stock's fundamental value by taking into account the company's earnings per share and book value per share. The Graham number is the upper bound of the price range that a defensive investor should pay for the stock. According to the theory, any stock price below the Graham number is considered undervalued, and thus worth investing in.
The historical rank and industry rank for Chipotle Mexican Grill's Graham Number or its related term are showing as below:
CMG'
s Price-to-Graham-Number Range Over the Past 10 Years
Min: 3.4 Med: 6.44 Max: 10.55
Current: 5.66
During the past 13 years, the highest Price to Graham Number ratio of Chipotle Mexican Grill was 10.55. The lowest was 3.40. And the median was 6.44.
CMG's Price-to-Graham-Number is ranked worse than 86.54% of 208
companies
in the Restaurants industry
Industry Median: 1.635
vs CMG: 5.66
Graham Number is a combination of asset valuation and earnings power valuation. It is a very conservative way of valuing a stock.
Chipotle Mexican Grill (NYSE:CMG) Graham Number Explanation
Ben Graham actually did not publish a formula like this. But he wrote in The Intelligent Investor (1948 version) regarding to the criteria for purchases:
Current price should not be more than 15 times average earnings of the past three years.
Current price should not be more than 1.5 times the book value last reported. However, a multiplier of earnings below 15 could justify a correspondingly higher multiplier of assets. As a rule of thumb we suggest that the product of the multiplier times the ratio of price to book value should not exceed 22.5. (This figure corresponds to 15 times earnings and 1.5 times book value. It would admit an issue selling at only 9 times earnings and 2.5 times asset value, etc.)
Unlike valuation methods such as DCF or Discounted Earnings, the Graham number does not take growth into the valuation. Unlike the valuation methods based on book value alone, it takes into account the earnings power. Therefore, the Graham Number is a combination of asset valuation and earnings power valuation.
In general, the Graham number is a very conservative way of valuing a stock. It cannot be applied to companies with negative book values.
Chipotle Mexican Grill's Price to Graham number Ratio for today is calculated as
Price to Graham number
=
Share Price (Today)
/
Graham number (Q: Jun. 2026 )
=
38.52
/
6.55
=
5.89
* 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.
Be Aware
Please keep these in mind:
1. Graham Number does not take growth into account. Therefore it underestimates the values of the companies that have good earnings growth. We feel that if the earnings per share grows more than 10% a year, Graham Number underestimates the value.
2. Graham Number punishes the companies that have temporarily low earnings. Therefore, an average of earnings makes more sense in the calculation of Graham Number.
3. Graham Numbers underestimates companies that are light with book.
Chipotle Mexican Grill Graham Number Related Terms
Chipotle Mexican Grill Graham Number 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, Chipotle Mexican Grill's Price-to-Graham-Number, along with its competitors' market caps and Price-to-Graham-Number 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.
Chipotle Mexican Grill Price-to-Graham-Number vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, Chipotle Mexican Grill's Price-to-Graham-Number distribution charts can be found below:
* The bar in red indicates where Chipotle Mexican Grill's Price-to-Graham-Number falls into.
* 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.
Chipotle Mexican Grill (CMG) has a Graham Number of $6.55 as of Jun. 2026. The Graham Number values a company based on its per-share earnings and book value. View historical data on Chipotle Mexican Grill and its competitors. This is near median its historical median of 6.44. Over the past decade, Chipotle Mexican Grill's Graham Number has ranged from 3.40 to 10.55. According to the industry distribution chart, Chipotle Mexican Grill ranks #180 out of 208 companies in the Restaurants industry, placing it in the top 86.5%.
Is Chipotle Mexican Grill's Graham Number too high?
Chipotle Mexican Grill's current Graham Number of $6.55 is near median its 10-year median of 6.44. Over the past 10 years, this metric has ranged from a low of 3.40 to a high of 10.55. The Restaurants industry median Graham Number is 1.64. Chipotle Mexican Grill's value of $6.55 is 300.6% above this industry median. Based on the distribution chart, Chipotle Mexican Grill ranks #180 out of 208 companies in the Restaurants industry, which is in the bottom quartile relative to peers. Overall, Chipotle Mexican Grill has a GF Score™ of 84/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Chipotle Mexican Grill's Graham Number compare to YUM and DRI?
According to the Restaurants industry distribution chart, Chipotle Mexican Grill ranks #180 out of 208 companies for Graham Number. This places Chipotle Mexican Grill in the lower half of its industry. The industry median Graham Number is 1.64. Chipotle Mexican Grill's value of $6.55 is 300.6% above this benchmark. Historically, Chipotle Mexican Grill's own Graham Number has ranged from 3.40 to 10.55 over the past decade. While the company's 10-year median is 6.44 vs. the industry median of 1.64, Chipotle Mexican Grill has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Graham Number for a Restaurants company?
The median Graham Number among Restaurants companies is 1.64, based on 208 companies in the industry. Companies in the top quartile (top 25%) have a Graham Number significantly above this median, while those in the bottom quartile fall well below. However, Graham Number should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Chipotle Mexican Grill's current Graham Number of $6.55 is 300.6% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Graham Number mean?
A high Graham Number can signal that a stock is expensive relative to its fundamentals. The Graham Number values a company based on its per-share earnings and book value. View historical data on Chipotle Mexican Grill and its competitors. For the Restaurants industry, the median Graham Number is 1.64 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Chipotle Mexican Grill's current Graham Number is $6.55, which is near median its own 10-year median of 6.44. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Chipotle Mexican Grill stock overvalued right now?
Based on GuruFocus' analysis, Chipotle Mexican Grill (CMG) is currently considered Significantly Undervalued. The stock's GF Value™ is $60.43, compared to a current price of $38.52 — trading 36.3% below its estimated fair value. The current Graham Number is $6.55, which is near median its 10-year median of 6.44 and 300.6% above the Restaurants industry median of 1.64. Chipotle Mexican Grill's overall GF Score™ is 84/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Graham Number calculated?
Graham Number is calculated from a company's financial statements. For Chipotle Mexican Grill (CMG), the current Graham Number is $6.55 as of Jun. 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 Chipotle Mexican Grill (CMG) Overvalued in 2026?
Based on GuruFocus' analysis, Chipotle Mexican Grill stock appears to be undervalued.
The current stock price of $38.52 is trading 36.3% below its estimated GF Value™ of $60.43.
GuruFocus considers Chipotle Mexican Grill to be Significantly Undervalued.
Key valuation signals for CMG:
Graham Number: $6.55 (near median its 10-year median of 6.44)
GF Value™: $60.43 vs. price of $38.52 (36.3% below fair value)
Industry Position: 300.6% above the Restaurants median (#180 of 208)
No single metric tells the full story. See the CMG stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Chipotle is a leading fast-casual, Mexican-inspired restaurant chain, generating $11.9 billion in sales across 3,983 company-operated US locations, 104 international units primarily in Canada and Europe, and 14 licensed stores largely operated in the Middle East at the end of 2025. The firm's revenue is primarily driven by food and beverage sales at its company-owned restaurants, supplemented by delivery fees generated through its first-party digital channels. Chipotle emphasizes ingredients with no artificial flavors and utilizes an efficient, assembly line service model to serve mainly customizable burritos, bowls, salads, quesadillas, and tacos.
84GF Score
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