The PS Ratio, or Price-to-Sales ratio, or Price/Sales, is a financial ratio used to compare a company's market price to its Revenue per Share. As of today, Shake Shack's share price is $101.38.
Shake Shack's Revenue per Share for the trailing twelve months (TTM) ended in Dec. 2023 was $25.43. Hence, Shake Shack's PS Ratio for today is 3.99.
Warning Sign:
Shake Shack Inc stock PS Ratio (=4.02) is close to 2-year high of 4.3
The historical rank and industry rank for Shake Shack's PS Ratio or its related term are showing as below:
SHAK'
s PS Ratio Range Over the Past 10 Years
Min: 0.58 Med: 3.11 Max: 9.12
Current: 3.94
During the past 12 years, Shake Shack's highest PS Ratio was 9.12. The lowest was 0.58. And the median was 3.11.
SHAK's PS Ratio is ranked worse than 89.71% of 350
companies
in the Restaurants industry
Industry Median: 0.955
vs SHAK: 3.94
During the past 12 months, the average Revenue per Share Growth Rate of Shake Shack was 7.90% per year.
During the past 3 years, the average Revenue per Share Growth Rate was 20.70% per year.
During the past 5 years, the average Revenue per Share Growth Rate was 9.60% per year.
During the past 10 years, the average Revenue per Share Growth Rate was -0.20% per year.
During the past 12 years, Shake Shack's highest 3-Year average Revenue per Share Growth Rate was 20.70% per year. The lowest was -44.20% per year. And the median was 6.30% per year.
Back to Basics: PS Ratio
Shake Shack PS Ratio Historical Data
The historical data trend for Shake Shack's PS 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 PS Ratio, along with its competitors' market caps and PS 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 PS Ratio Distribution in the Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, Shake Shack's PS Ratio distribution charts can be found below:
* The bar in red indicates where Shake Shack's PS Ratio falls into.
Shake Shack PS Ratio Calculation
The PS Ratio, or Price-to-Sales ratio, or Price/Sales, is a financial ratio used to compare a company's market price to its Revenue per Share. It is a ratio widely used to value stocks and it was first used by Ken Fisher.
Shake Shack's Share Price of today is $101.38. Shake Shack's Revenue per Share for the trailing twelve months (TTM) ended in Dec. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was $25.43.
* 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:
The PS Ratio is an excellent valuation indicator if you want to compare a stock with its historical valuation or with the stocks in the same industry. The PS Ratio works especially well when you want to compare the stock's current valuation with its historical valuation. The PS Ratio is a great valuation tool for evaluating cyclical businesses where the PE Ratio works poorly. It works the best when comparing the current valuation with the historical valuation because over time, a company's profit margin tends to revert to the mean.
When the PS Ratio is applied to the whole stock market, it can be used to evaluate the current market valuation and projected returns. In this case, the price is the total market cap of all stocks that are traded, and sales are the GDP of the country. This is how Warren Buffett estimates the broad market valuation and project future returns.
The PS Ratio does not tell you how cheap or expensive the stock is. It cannot be used to compare companies in different industries. It works better for companies within the same industry because these companies tend to have similar capital structures and profit margins. It works the best when comparing a company with itself in the past.
Shake Shack PS Ratio Related Terms
Thank you for viewing the detailed overview of Shake Shack's PS 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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