What do the fundamentals predict for the Chipotle Mexican Grill, Inc. (CMG) stock?
Chipotle Mexican Grill, Inc. (CMG) achieves a low valuation score of 32 from Investors Observer Analysis. Our proprietary rating system takes into account the overall health of the business by examining the stock’s price, earnings and growth rate to determine if it represents good value. CMG holds better value than 32% of the shares at its current price. Investors who focus on long-term growth through buy and hold investments will find the valuation ranking particularly relevant when allocating their assets.
CMG’s 12-month price-to-earnings (PE) ratio of 96.9 puts it above the all-time average of around 15. CMG is a poor value at its current trading price as investors pay more than its current trading price. value in relation to the company’s profits. CMG’s last 12 month earnings per share (EPS) of 14.27 does not justify what it is currently trading in the market. However, trailing PE ratios do not take into account a company’s projected growth rate, resulting in some companies having high PE ratios due to high growth potentially attractive to investors even if current earnings are low. .
CMG currently has a 12-month forward PEG to Growth Ratio of 3.07. The market is currently overvaluing CMG relative to its projected growth due to the PEG ratio above fair market value of 1. CMG’s PEG is derived from its forward price / earnings ratio divided by its growth rate. Because PEG ratios include more fundamentals of a company’s overall health with an additional focus on the future, they are one of the valuation metrics most used by analysts.
Overall, these valuation metrics paint a pretty poor picture for CMG at its current price due to an overvalued PEG ratio despite strong growth. CMG’s PE and PEG are lower than the market average, resulting in a valuation score of 32.
Click here for the full stock valuation report of Chipotle Mexican Grill, Inc. (CMG).