Portillo's Inc. (PTLO) 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

-434.6%

-$17.33

vs $5.18 price

Levered DCF

$4.78

After debt service

Piotroski score

5 / 9

Average

Altman Z-score

0.69

Distress zone

Rating

B-

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
P/E	16.61×	18.96×	46.85×	61.39×	-89.21×	-116.4×	-76.58×
P/B	0.68×	1.39×	2.66×	2.61×	7.83×	6.94×	2.98×
P/S	0.44×	0.78×	1.26×	1.14×	2.51×	2.14×	2.04×
EV / EBITDA	12.77×	11.91×	17.5×	17×	35.21×	17.16×	19.63×
Gross margin	39.4%	40.5%	40.5%	38.9%	42.9%	43.3%	40.9%
Operating margin	7.0%	8.2%	8.2%	7.0%	5.6%	12.6%	10.2%
Net margin	2.6%	4.2%	2.7%	1.8%	1.1%	2.7%	1.2%
Current ratio	0.27×	0.39×	0.4×	0.85×	0.88×	0.82×	0.47×
Debt / equity	1.43×	1.49×	1.71×	2.04×	1.86×	3.34×	1.48×
Interest coverage	2.25×	2.27×	2.02×	1.49×	0.76×	1.27×	1.13×
Dividend yield	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%
Payout ratio	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
Return on equity	4.1%	7.4%	5.7%	4.2%	3.5%	8.7%	1.7%
Return on invested capital	3.0%	3.5%	3.7%	3.1%	2.5%	6.8%	5.9%
Return on assets	1.2%	2.0%	1.3%	0.8%	0.6%	1.3%	0.6%
Free cash flow yield	-5.8%	1.8%	-2.0%	1.5%	0.5%	3.8%	2.2%
Earnings yield	6.0%	5.3%	2.1%	1.6%	0.4%	1.3%	0.6%
Enterprise value	$970.4M	$1.1B	$1.4B	$1.1B	$1.6B	$1.4B	$1.4B
Net debt / EBITDA	8.56×	6.05×	6.76×	7.1×	6.08×	5.23×	6.3×
Cash conversion cycle (days)	-17	-25	-14	-18	-20	-19	-13