The Cheesecake Factory Incorporated (CAKE) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-51.1%

$56.07

vs $114.61 price

Levered DCF

$44.88

After debt service

Piotroski score

6 / 9

Average

Altman Z-score

Safe zone

Rating

Overall 3 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	15.78×	14.46×	16.36×	37.18×	38.5×	-5.85×	13.4×	19.87×
P/B	5.34×	5.11×	5.22×	5.52×	5.71×	3.2×	2.99×	3.45×
P/S	0.62×	0.63×	0.48×	0.49×	0.64×	0.82×	0.69×	0.84×
EV / EBITDA	19.75×	14.46×	17.17×	25.14×	20.42×	-12.13×	14.1×	9.3×
Gross margin	78.3%	77.5%	40.9%	38.8%	41.1%	37.6%	41.1%	41.4%
Operating margin	5.0%	5.0%	3.2%	1.2%	2.8%	-17.5%	4.2%	5.1%
Net margin	4.0%	4.4%	2.9%	1.3%	2.5%	-12.8%	5.1%	4.2%
Current ratio	0.59×	0.47×	0.46×	0.53×	0.64×	0.58×	0.4×	0.47×
Debt / equity	7.93×	4.3×	5.85×	6.3×	5.5×	3.23×	2.81×	0.02×
Interest coverage	17.93×	17.64×	12.69×	6.44×	7.69×	-40.4×	41.49×	17.54×
Dividend yield	2.2%	2.3%	3.2%	2.6%	1.0%	1.0%	3.6%	2.9%
Payout ratio	35.2%	33.8%	52.5%	98.0%	26.3%	-6.2%	47.7%	56.8%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	34.0%	35.4%	31.9%	14.8%	21.9%	-50.0%	22.3%	17.3%
Return on invested capital	6.3%	6.6%	4.7%	1.7%	3.6%	-10.8%	4.0%	12.2%
Return on assets	4.6%	5.2%	3.6%	1.6%	2.6%	-9.2%	4.5%	7.5%
Free cash flow yield	6.7%	4.8%	3.9%	3.0%	7.7%	-3.0%	8.4%	9.4%
Earnings yield	6.4%	6.9%	6.1%	2.7%	3.8%	-15.6%	7.5%	5.0%
Enterprise value	$5.6B	$4.1B	$3.5B	$3.3B	$3.5B	$3.1B	$3.3B	$2B
Net debt / EBITDA	11.5×	6.45×	8.94×	13×	9.46×	-5.79×	6.71×	-0.08×
Cash conversion cycle (days)	11	10	14	14	17	18	14	11