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Shake ShackSHAK +1.98%76 PEG Ratio is 0.53 as of Jul. 27, 2026, which is 96% below its 10-year median of 13.81. GuruFocus rates SHAK with a GF Score™ of 76/100 and a GF Value™ of $122.02 (Significantly Undervalued). The stock has 2 warning signs investors should review. Among 113 Restaurants companies, Shake Shack ranks better than 76.11% on this metric.
PE Ratio without NRI / 5-Year EBITDA Growth Rate*
PEG Ratio is defined as the PE Ratio without NRI divided by the growth ratio. The growth rate we use is the 5-Year EBITDA growth rate. As of today, Shake Shack's PE Ratio without NRI is 40.96. Shake Shack's 5-Year EBITDA growth rate is 77.90%. Therefore, Shake Shack's PEG Ratio for today is 0.53.
* The 5-Year EBITDA Growth Rate is the 5-year average EBITDA per share growth rate. While the denominator is a percentage, we use the whole number as opposed to the decimal form for the calculation. For example, 5% would be shown as 5 as opposed to 0.05. If it's smaller than or equal to 0, then the PEG Ratio is not calculated.
The historical rank and industry rank for Shake Shack's PEG Ratio or its related term are showing as below:
SHAK'
s PEG Ratio Range Over the Past 10 Years
Min: 0.53 Med: 13.81 Max: 35.34
Current: 0.53
During the past 13 years, Shake Shack's highest PEG Ratio was 35.34. The lowest was 0.53. And the median was 13.81.
SHAK's PEG Ratio is ranked better than 76.11% of 113
companies
in the Restaurants industry
Industry Median: 1.34
vs SHAK: 0.53
Peter Lynch thinks a company with a P/E ratio equal to its growth rate is fairly valued.
Shake Shack (NYSE:SHAK) PEG Ratio Explanation
To compare stocks with different growth rates, Peter Lynch invented a ratio called PEG Ratio. PEG Ratio is defined as the P/E ratio divided by the growth ratio. He thinks a company with a P/E ratio equal to its growth rate is fairly valued. Still he said he would rather buy a company growing 20% a year with a P/E of 20, instead of a company growing 10% a year with a P/E of 10.
Shake Shack PEG Ratio Related Terms
Shake Shack PEG Ratio Historical Data
* Premium members only.
The historical data trend for Shake Shack's PEG 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.
For the Restaurants subindustry, Shake Shack's PEG Ratio, along with its competitors' market caps and PEG 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.
Shake Shack PEG Ratio vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, Shake Shack's PEG Ratio distribution charts can be found below:
* The bar in red indicates where Shake Shack's PEG Ratio 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.
* Note: The 5-Year EBITDA Growth Rate is the 5-year average EBITDA per share growth rate. While the denominator is a percentage, we use the whole number as opposed to the decimal form for the calculation. For example, 5% would be shown as 5 as opposed to 0.05. If it's smaller than or equal to 0, then the PEG Ratio is not calculated.
Shake Shack (SHAK) has a PEG Ratio of 0.53 as of Jul. 27, 2026. Price-earnings to growth ratio is the ratio of price-earnings to a company's earnings growth rate. View historical data on Shake Shack and its competitors. This is 96% below median its historical median of 13.81. Over the past decade, Shake Shack's PEG Ratio has ranged from 0.53 to 35.34. According to the industry distribution chart, Shake Shack ranks #27 out of 113 companies in the Restaurants industry, placing it in the top 23.9%.
Is Shake Shack's PEG Ratio too high?
Shake Shack's current PEG Ratio of 0.53 is 96% below median its 10-year median of 13.81. Over the past 10 years, this metric has ranged from a low of 0.53 to a high of 35.34. The Restaurants industry median PEG Ratio is 1.34. Shake Shack's value of 0.53 is 60.4% below this industry median. Based on the distribution chart, Shake Shack ranks #27 out of 113 companies in the Restaurants industry, which is in the top quartile — a strong position relative to peers. Overall, Shake Shack has a GF Score™ of 76/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Shake Shack's PEG Ratio compare to ARCO and BJRI?
According to the Restaurants industry distribution chart, Shake Shack ranks #27 out of 113 companies for PEG Ratio. This places Shake Shack in the top 24% of its industry — outperforming the majority of peers. The industry median PEG Ratio is 1.34. Shake Shack's value of 0.53 is 60.4% below this benchmark. Historically, Shake Shack's own PEG Ratio has ranged from 0.53 to 35.34 over the past decade. While the company's 10-year median is 13.81 vs. the industry median of 1.34, Shake Shack has consistently been below 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 PEG Ratio for a Restaurants company?
The median PEG Ratio among Restaurants companies is 1.34, based on 113 companies in the industry. Companies in the top quartile (top 25%) have a PEG Ratio significantly above this median, while those in the bottom quartile fall well below. However, PEG Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Shake Shack's current PEG Ratio of 0.53 is 60.4% below 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 PEG Ratio mean?
A high PEG Ratio can signal that a stock is expensive relative to its fundamentals. Price-earnings to growth ratio is the ratio of price-earnings to a company's earnings growth rate. View historical data on Shake Shack and its competitors. For the Restaurants industry, the median PEG Ratio is 1.34 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Shake Shack's current PEG Ratio is 0.53, which is 96% below median its own 10-year median of 13.81. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Shake Shack stock overvalued right now?
Based on GuruFocus' analysis, Shake Shack (SHAK) is currently considered Significantly Undervalued. The stock's GF Value™ is $122.02, compared to a current price of $57.10 — trading 53.2% below its estimated fair value. The current PEG Ratio is 0.53, which is 96% below median its 10-year median of 13.81 and 60.4% below the Restaurants industry median of 1.34. Shake Shack's overall GF Score™ is 76/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is PEG Ratio calculated?
PEG Ratio is calculated from a company's financial statements. For Shake Shack (SHAK), the current PEG Ratio is 0.53 as of Jul. 27, 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 Shake Shack (SHAK) Overvalued in 2026?
Based on GuruFocus' analysis, Shake Shack stock appears to be undervalued.
The current stock price of $57.10 is trading 53.2% below its estimated GF Value™ of $122.02.
GuruFocus considers Shake Shack to be Significantly Undervalued.
Key valuation signals for SHAK:
PEG Ratio: 0.53 (96% below median its 10-year median of 13.81)
GF Value™: $122.02 vs. price of $57.10 (53.2% below fair value)
Industry Position: 60.4% below the Restaurants median (#27 of 113)
No single metric tells the full story. See the SHAK stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Shake Shack Inc is a roadside burger stand. It serves a classic American menu of premium burgers, hot dogs, crispy chicken, frozen custard, crinkle-cut fries, shakes, beer, wine, and more. The company's burgers are made with a whole-muscle blend of all-natural, hormone and antibiotic-free Angus beef, ground fresh daily, cooked to order, and served on a non-genetically modified organism (GMO) potato bun. Its menu focuses on food and beverages, crafted from a range of classic American foods. The company serves draft Root Beer, seasonal freshly-squeezed lemonade, organic fresh-brewed iced tea, cold brew coffee, organic apple juice, and Shack20 bottled water. Geographically, the company generates the majority of its revenue from the United States.
76GF Score
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