Shake Shack Inc
NYSE:SHAK

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Shake Shack Inc
NYSE:SHAK
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Price: 103.02 USD 5.56% Market Closed
Market Cap: $4.4B

P/B

8.4
Current
4%
More Expensive
vs 3-y average of 8

Price to Book (P/B) ratio compares a company`s market value to its book value. It shows how much investors are paying for each dollar of net assets on the balance sheet.

P/B
8.4
=
Market Cap
$3.9B
/
Total Equity
$525.3m

Price to Book (P/B) ratio compares a company`s market value to its book value. It shows how much investors are paying for each dollar of net assets on the balance sheet.

P/B
8.4
=
Market Cap
$3.9B
/
Total Equity
$525.3m

Valuation Scenarios

Shake Shack Inc is trading above its 3-year average

If P/B returns to its 3-Year Average (8), the stock would be worth $98.85 (4% downside from current price).

Statistics
Positive Scenarios
0/4
Maximum Downside
-70%
Maximum Upside
No Upside Scenarios
Average Downside
31%
Scenario P/B Value Implied Price Upside/Downside
Current Multiple 8.4 $103.02
0%
3-Year Average 8 $98.85
-4%
5-Year Average 7.7 $95.03
-8%
Industry Average 4.8 $59.34
-42%
Country Average 2.5 $30.93
-70%

Forward P/B
Today’s price vs future total equity

Not enough data available to calculate forward P/B

Peer Comparison

All Multiples
P/B
P/E
All Countries
Close
Market Cap P/B P/E
US
Shake Shack Inc
NYSE:SHAK
4.4B USD 8.4 96.2
US
McDonald's Corp
NYSE:MCD
213.2B USD -119 24.9
US
Starbucks Corp
NASDAQ:SBUX
112.4B USD -13.4 82.1
UK
Compass Group PLC
LSE:CPG
47.7B GBP 0.1 0.3
US
Yum! Brands Inc
NYSE:YUM
44.4B USD -6.1 28.5
US
Chipotle Mexican Grill Inc
NYSE:CMG
44.6B USD 15.8 29.1
CA
Restaurant Brands International Inc
NYSE:QSR
28B USD 7.7 36.1
IN
Eternal Ltd
NSE:ETERNAL
2.4T INR 7.6 1 013.2
US
Darden Restaurants Inc
NYSE:DRI
23.1B USD 11 20.9
CN
Yum China Holdings Inc
NYSE:YUMC
17.3B USD 3.2 18.6

Market Distribution

Higher than 83% of companies in the United States of America
Percentile
83nd
Based on 10 946 companies
83nd percentile
8.4
Low
0 — 1.5
Typical Range
1.5 — 4.8
High
4.8 —
Distribution Statistics
the United States of America
Min 0
30th Percentile 1.5
Median 2.5
70th Percentile 4.8
Max 147 580.5

Shake Shack Inc
Glance View

Shake Shack Inc. began as a humble hot dog cart in Madison Square Park, New York City, back in 2001, part of a public art installation by restaurateur Danny Meyer’s Union Square Hospitality Group. Fast forward to the present day, and Shake Shack has blossomed into a globally recognized fast-casual restaurant chain known for its high-quality burgers, crinkle-cut fries, and indulgent milkshakes. The company operates primarily on a straightforward yet effective business model: deliver premium-quality fast food in a friendly, vibrant environment, thereby attracting a broad demographic willing to pay a small premium compared to other fast-food alternatives. This premium positioning is critical to its strategy, allowing for higher revenue per transaction and fostering brand loyalty. Shake Shack's success largely hinges on its strategic use of innovative sourcing and brand alignment. By emphasizing fresh, simple, high-quality ingredients—like 100% all-natural Angus beef and hormone-free dairy—the chain differentiates itself from traditional fast-food players. In addition to its food offerings, Shake Shack smartly capitalizes on its strong brand image and customer experience to engage loyal fans through exclusive offers, collaborations, and seasonal menu items that generate buzz and repeat visits. Expansion remains a crucial growth pillar, with efforts to broaden its footprint both domestically and internationally, carefully balancing new outlet openings with operational efficiency to harness economies of scale. This savvy mix of upscale fast-casual dining, brand magnetism, and calculated growth has become the winning formula that fuels Shake Shack's sustained momentum in the ever-competitive restaurant landscape.

SHAK Intrinsic Value
74.48 USD
Overvaluation 28%
Intrinsic Value
Price $103.02
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