Texas Roadhouse, Inc. (TXRH) 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

-59.9%

$74.98

vs $187.15 price

Levered DCF

$128.65

After debt service

Piotroski score

7 / 9

Strong

Altman Z-score

6.02

Safe 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	FY2018
P/E	27.4×	27.76×	27.01×	23.6×	25.46×	175.47×	22.8×	27.01×
P/B	7.6×	8.87×	7.22×	6.29×	5.9×	5.91×	4.34×	4.51×
P/S	1.89×	2.24×	1.78×	1.59×	1.8×	2.29×	1.44×	1.74×
EV / EBITDA	17.37×	18.18×	17.55×	15.14×	15.67×	42.14×	13.53×	14.03×
Gross margin	12.4%	17.6%	15.9%	16.3%	17.5%	11.8%	18.0%	18.1%
Operating margin	8.6%	9.6%	7.6%	8.0%	8.6%	1.0%	7.7%	7.6%
Net margin	6.9%	8.1%	6.6%	6.7%	7.1%	1.3%	6.3%	6.4%
Current ratio	0.5×	0.62×	0.48×	0.61×	0.94×	1.01×	0.59×	0.9×
Debt / equity	0.67×	0.63×	0.68×	0.74×	0.7×	0.9×	0.61×	0×
Interest coverage	0×	0×	0×	2,582.23×	81.13×	5.83×	0×	317.75×
Dividend yield	1.6%	1.4%	1.8%	1.9%	1.3%	0.5%	2.6%	1.6%
Payout ratio	44.4%	37.6%	48.3%	46.0%	34.1%	80.0%	58.7%	43.3%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	27.8%	31.9%	26.7%	26.6%	23.2%	3.4%	19.0%	16.7%
Return on invested capital	16.2%	18.3%	14.9%	14.6%	13.3%	1.3%	11.4%	15.1%
Return on assets	11.4%	13.6%	10.9%	10.7%	9.8%	1.3%	8.8%	10.8%
Free cash flow yield	3.1%	3.3%	2.6%	4.2%	4.3%	1.4%	4.0%	4.6%
Earnings yield	3.7%	3.6%	3.7%	4.2%	3.9%	0.6%	4.4%	3.7%
Enterprise value	$11.9B	$12.7B	$8.9B	$6.9B	$6.7B	$6B	$4.4B	$4.1B
Net debt / EBITDA	1.22×	0.88×	1.31×	1.26×	0.96×	3.32×	1.37×	-0.72×
Cash conversion cycle (days)	5	5	5	6	9	7	6	6