AR

Arcos Dorados Holdings IncNYSE ARCO Stock Report

Last reporting period 30 Jun, 2024

Updated 05 Nov, 2024

Last price

Market cap $B

1.782

Small

Exchange

XNYS - New York Stock Exchange, Inc

View Section: Eyestock Rating

Arcos Dorados Fair Value

AR

The fair market value of ARCO stock is 11.01 USD. Relative to the market price of 8.54 USD Arcos Dorados is undervalued by 28.9%

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

Greatly undervalued 28.9%
11.01 USD
ARCO Fair Value
8.54 USD
Market price of ARCO

Arcos Dorados Valuation

Current ARCO share ticker price is 8.54 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

1y
3y
5y
All time
Market price

Current market price

Fair value

Current price is 29% lower its fair value

Min value

Current price is 5% lower its minimum value

Max value

Current price is 236% lower its maximum value

06.11.2024

Market price:

* Eyestock is not operated by a broker, a dealer, or a registered investment adviser. Under no circumstances does any information posted on eyestock.io represent a recommendation to buy or sell a security.

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

3.3

Annual return (geometric mean)

44.32

Risk (standard deviation) of returns

β

1.17

Beta (volatility compared to market)

It means that ARCO stock is more volatile than the broader market

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View Section: Profitability