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Shake Shack PE Ratio

: At Loss (As of Today)
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The PE Ratio, or Price-to-Earnings ratio, or P/E Ratio, is a financial ratio used to compare a company's market price to its Earnings per Share (Diluted). As of today (2021-10-28), Shake Shack's share price is $69.85. Shake Shack's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Jun. 2021 was $-0.61. Therefore, Shake Shack's PE Ratio for today is At Loss.


The historical rank and industry rank for Shake Shack's PE Ratio or its related term are showing as below:

NYSE:SHAK' s PE Ratio Range Over the Past 10 Years
Min: At Loss   Med: 96.21   Max: 6301
Current: At Loss

At Loss
6301

During the past 9 years, the highest PE Ratio of Shake Shack was 6301.00. The lowest was 0.00. And the median was 96.21.


NYSE:SHAK's PE Ratio is ranked lower than
99.99% of the 57 Companies
in the Restaurants industry.

( Industry Median: 20.90 vs. NYSE:SHAK: At Loss )

Shake Shack's Earnings per Share (Diluted) for the three months ended in Jun. 2021 was $0.05. Its Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Jun. 2021 was $-0.61.

As of today (2021-10-28), Shake Shack's share price is $69.85. Shake Shack's EPS without NRI for the trailing twelve months (TTM) ended in Jun. 2021 was $-0.61. Therefore, Shake Shack's PE Ratio without NRI for today is At Loss.

During the past 9 years, Shake Shack's highest PE Ratio without NRI was 6301.00. The lowest was 0.00. And the median was 96.21.

Shake Shack's EPS without NRI for the three months ended in Jun. 2021 was $0.05. Its EPS without NRI for the trailing twelve months (TTM) ended in Jun. 2021 was $-0.61.

During the past 3 years, the average EPS without NRI Growth Rate was -384.90% per year.

During the past 9 years, Shake Shack's highest 3-Year average EPS without NRI Growth Rate was 4.80% per year. The lowest was -384.90% per year. And the median was -51.00% per year.

Shake Shack's EPS (Basic) for the three months ended in Jun. 2021 was $0.05. Its EPS (Basic) for the trailing twelve months (TTM) ended in Jun. 2021 was $-0.59.


Shake Shack PE Ratio Historical Data

The historical data trend for Shake Shack's PE 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.

* Premium members only.

Shake Shack Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20
PE Ratio
Premium Member Only Premium Member Only Premium Member Only Premium Member Only 67.53 At Loss 87.35 97.66 At Loss

Shake Shack Quarterly Data
Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21
PE Ratio 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 Premium Member Only Premium Member Only Premium Member Only At Loss At Loss At Loss At Loss At Loss

Competitive Comparison

For the Restaurants subindustry, Shake Shack's PE Ratio, along with its competitors' market caps and PE 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 PE Ratio Distribution

For the Restaurants industry and Consumer Cyclical sector, Shake Shack's PE Ratio distribution charts can be found below:

* The bar in red indicates where Shake Shack's PE Ratio falls into.



Shake Shack PE Ratio Calculation

The PE Ratio, or Price-to-Earnings ratio, or P/E Ratio, is a financial ratio used to compare a company's market price to its Earnings per Share (Diluted). It is the most widely used ratio in the valuation of stocks.

Shake Shack's PE Ratio for today is calculated as

PE Ratio=Share Price/Earnings per Share (Diluted) (TTM)
=69.85/-0.610
=At Loss

Shake Shack's Share Price of today is $69.85.
Shake Shack's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Jun. 2021 adds up the quarterly data reported by the company within the most recent 12 months, which was $-0.61.

* 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.

It can also be calculated from the numbers for the whole company:


There are at least three kinds of PE Ratios used by different investors. They are Trailing Twelve Month PE Ratio or PE Ratio (TTM), Forward PE Ratio, or PE Ratio without NRI. A new PE Ratio based on inflation-adjusted normalized PE Ratio is called Shiller PE Ratio, after Yale professor Robert Shiller.

In the calculation of PE Ratio, the earnings per share used are the earnings per share over the past 12 months. For Forward PE Ratio, the earnings are the expected earnings for the next twelve months. In the case of PE Ratio without NRI, the reported earnings less the non-recurring items are used.

For Shiller PE Ratio, the earnings of the past 10 years are inflation-adjusted and averaged. Since it looks at the average over the last 10 years, Shiller PE Ratio is also called PE10.


Shake Shack  (NYSE:SHAK) PE Ratio Explanation

The PE Ratio can be viewed as the number of years it takes for the company to earn back the price you pay for the stock. For example, if a company earns $2 a share per year, and the stock is traded at $30, the PE Ratio is 15. Therefore it takes 15 years for the company to earn back the $30 you paid for its stock, assuming the earnings stays constant over the next 15 years.

In real business, earnings never stay constant. If a company can grow its earnings, it takes fewer years for the company to earn back the price you pay for the stock. If a company's earnings decline it takes more years. As a shareholder, you want the company to earn back the price you pay as soon as possible. Therefore, lower P/E stocks are more attractive than higher P/E stocks so long as the PE Ratio is positive. Also for stocks with the same PE Ratio, the one with faster growth business is more attractive.

If a company loses money, the PE Ratio becomes meaningless.

To compare stocks with different growth rates, Peter Lynch invented a ratio called PEG Ratio. PEG Ratio is defined as the PE Ratio divided by the growth ratio. He thinks a company with a PE Ratio equal to its growth rate is fairly valued. Still he said he would rather buy a company growing 20% a year with a PE Ratio of 20, instead of a company growing 10% a year with a PE Ratio of 10.

Because the PE Ratio measures how long it takes to earn back the price you pay, the PE Ratio can be applied to the stocks across different industries. That is why it is the one of the most important and widely used indicators for the valuation of stocks.

Similar to the PE Ratio without NRI or PS Ratio or Price-to-Operating-Cash-Flow or Price-to-Free-Cash-Flow , the PE Ratio measures the valuation based on the earning power of the company. This is where it is different from the PB Ratio , which measures the valuation based on the company's balance sheet.


Be Aware

Investors need to be aware that the PE Ratio can be misleading a lot of times, especially when the underlying business is cyclical and unpredictable. As Peter Lynch pointed out, cyclical businesses have higher profit margins at the peaks of the business cycles. Their earnings are high and PE Ratios are artificially low. It is usually a bad idea to buy a cyclical business when the PE Ratio is low. A better ratio to identify the time to buy a cyclical businesses is the PS Ratio .

PE Ratio can also be affected by non-recurring-items such as the sale of part of businesses. This may increase for the current year or quarter dramatically. But it cannot be repeated over and over. Therefore PE Ratio without NRI is a more accurate indication of valuation than PE Ratio.


Shake Shack PE Ratio Related Terms

Thank you for viewing the detailed overview of Shake Shack's PE Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.


Shake Shack Business Description

Shake Shack logo
Industry
Consumer Cyclical » Restaurants NAICS : 722513 SIC : 5812
Traded in Other Exchanges
Address
225 Varick Street, Suite 301, New York, NY, USA, 10014
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. Its menu focuses on food and beverages, crafted from a range of classic American foods.
Executives
Garutti Randall J director, officer: Chief Executive Officer C/O SHAKE SHACK INC. 24 UNION SQUARE EAST, 5TH FLOOR NEW YORK NY 10003
Garutti Maria L 10 percent owner C/O SHAKE SHACK INC. 24 UNION SQUARE EAST, 5TH FLOOR NEW YORK NY 10003
Mcquinn Michael C 10 percent owner C/O SHAKE SHACK INC. 24 UNION SQUARE EAST, 5TH FLOOR NEW YORK NY 10003
Meyer Audrey H 10 percent owner C/O SHAKE SHACK INC. 24 UNION SQUARE EAST, 5TH FLOOR NEW YORK NY 10003
Daniel H. Meyer 2012 Gift Trust U/a/d 10/31/12 10 percent owner C/O SHAKE SHACK INC. 24 UNION SQUARE EAST, 5TH FLOOR NEW YORK NY 10003
Meyer Daniel Harris director, 10 percent owner 24 UNION SQUARE EAST SIXTH FLOOR NEW YORK NY 10003
Comonte Tara officer: PRESIDENT & CFO C/O SHAKE SHACK INC. 24 UNION SQUARE EAST,5TH FLOOR NEW YORK NY 10003
Walker Tristan director 330 WEST 34TH STREET NEW YORK NY 10001
Silverman Josh director 117 ADAMS STREET BROOKLYN NY 11201
Balbale Sumaiya director 697 CALMAR AVENUE OAKLAND CA 94610
Lyons Jenna director C/O J.CREW GROUP, INC. 770 BROADWAY NEW YORK NY 10003
Vivian Robert T director C/O SHAKE SHACK INC. 24 UNION SQUARE EAST, 5TH FLOOR NEW YORK NY 10003
Flug Jeffrey director, 10 percent owner C/O PENNANTPARK INVESTMENT CORPORATION 445 PARK AVENUE, 10TH FLOOR NEW YORK NY 10022
Fieler Anna Liao director 2036 STERLING AVE MENLO PARK CA 94025
Sokoloff Jonathan D director 11111 SANTA MONICA BLVD STE 2000 LOS ANGELES CA 90025

Shake Shack Headlines

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