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 166.18. Shake Shack's 5-Year EBITDA growth rate is 4.30%. Therefore, Shake Shack's PEG Ratio for today is 38.65.
* 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: 6.2 Med: 13.81 Max: 38.9
Current: 38.65
During the past 12 years, Shake Shack's highest PEG Ratio was 38.90. The lowest was 6.20. And the median was 13.81.
SHAK's PEG Ratio is ranked worse than 97.3% of 111
companies
in the Restaurants industry
Industry Median: 2.04
vs SHAK: 38.65
Peter Lynch thinks a company with a P/E ratio equal to its growth rate is fairly valued.
Shake Shack PEG Ratio Historical Data
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's PEG Ratio Distribution in the 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.
Shake Shack PEG Ratio Calculation
PEG Ratio is defined as the PE Ratio without NRI divided by the growth ratio.
The ratio we use is the 5-Year EBITDA growth rate.
Shake Shack's PEG Ratio for today is calculated as
* 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 (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
Thank you for viewing the detailed overview of Shake Shack's PEG Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Shake Shack Inc is a roadside burger stands. It is serving 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.
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