Arcos Dorados Fair Value
AR
The fair market value of ARCO stock is 11.01 USD. Relative to the market price of 8.4 USD Arcos Dorados is undervalued by 31%
Eyestock's quantitative valuation approach is based on the method of estimating historical multipliers. To determine whether a stock is undervalued, we compare its current price to our estimated of fair value. The more undervalued a stock is, the more investment is profitable.
Fair Relative Value
Arcos Dorados Valuation
Current ARCO share ticker price is 8.4 USD.
The fair value level of 11.01 USD can be considered as an effective entry point for long-term investors to start investing in ARCO stock. For a more in-depth assessment, we provide a minimum value that can be used to increase a stock position and a maximum one that can be used to reduce it.
Price chart is not available
Current market price
Current price is 31% lower its fair value
Current price is 7% lower its minimum value
Current price is 242% lower its maximum value
Market price:
ARCO stock is greatly undervalued
It means the current price may concern as a Low Risk Entry Point
Arcos Dorados Holdings Inc Stock Valuation Calculator
How do we value a stock?
As fair value, we use the product of the median Price-to-earnings ratios at the end of each reporting period for the last 5 years and earnings per share for the last 12 months. By analogy with the fair value, we calculate the maximum and minimum ones using the corresponding P/E extremums.
1
Maximum P/E over 5 years
35.47
2
Median P/E over 5 years
13.59
3
Minimum P/E over 5 years
11.09
4
Earning per share (last 12 months)
0.81 USD
Maximum value
1
x
4
=
28.73 USD
Fair value
2
x
4
=
11.01 USD
Minimum value
3
x
4
=
8.98 USD
Arcos Dorados Holdings Inc price metrics
3.34
Annual return (geometric mean)
44.33
Risk (standard deviation) of returns
β
1.15
Beta (volatility compared to market)