Shake Shack Inc. (SHAK) 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

-81.9%

$13.21

vs $72.85 price

Levered DCF

$64.00

After debt service

Piotroski score

6 / 9

Average

Altman Z-score

2.34

Grey zone

Rating

B-

Overall 2 / 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	71.2×	507.81×	145.33×	-62.92×	-328×	-68.93×	94.56×	84.11×
P/B	6.21×	11.19×	6.59×	3.95×	6.89×	7.73×	6.26×	4.7×
P/S	2.26×	4.2×	2.69×	1.81×	3.81×	6.02×	3.14×	2.8×
EV / EBITDA	20.99×	47.54×	31.04×	41.13×	72.04×	606.47×	31.65×	20.59×
Gross margin	18.0%	45.8%	44.0%	42.4%	41.4%	40.7%	44.7%	46.0%
Operating margin	5.9%	0.2%	0.5%	-3.0%	-2.1%	-8.4%	4.3%	6.9%
Net margin	3.2%	0.8%	1.9%	-2.4%	-0.6%	-8.1%	3.3%	3.3%
Current ratio	1.76×	1.97×	2.04×	2.33×	3.37×	1.85×	0.88×	1.69×
Debt / equity	1.72×	1.72×	1.74×	1.75×	1.68×	0.95×	1.14×	0.08×
Interest coverage	39.72×	1.49×	3.45×	-17.72×	-10.05×	-53.84×	59.18×	13.13×
Dividend yield	0.0%	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%	0.0%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	8.7%	2.2%	4.6%	-5.2%	-1.1%	-10.4%	6.6%	5.6%
Return on invested capital	3.4%	0.1%	0.4%	-1.8%	-0.4%	-4.1%	2.5%	4.1%
Return on assets	2.4%	0.6%	1.3%	-1.4%	-0.3%	-3.7%	2.0%	2.5%
Free cash flow yield	1.7%	0.7%	-0.5%	-4.0%	-1.5%	-1.0%	-0.9%	-0.2%
Earnings yield	1.4%	0.2%	0.7%	-1.3%	-0.2%	-1.3%	1.1%	1.2%
Enterprise value	$3.8B	$5.7B	$3.5B	$2.1B	$3.2B	$3.4B	$2.2B	$1.3B
Net debt / EBITDA	2.99×	4.04×	4.89×	9.51×	8.63×	42.65×	4.42×	-0.06×
Cash conversion cycle (days)	7	-4	-0	-2	-7	-18	-7	-7