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Shake Shack (Shake Shack) Cyclically Adjusted Price-to-FCF : (As of Apr. 28, 2024)


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What is Shake Shack Cyclically Adjusted Price-to-FCF?

Shiller PE for Stocks: The True Measure of Stock Valuation


Shake Shack Cyclically Adjusted Price-to-FCF Historical Data

The historical data trend for Shake Shack's Cyclically Adjusted Price-to-FCF can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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Shake Shack Cyclically Adjusted Price-to-FCF Chart

Shake Shack Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Cyclically Adjusted Price-to-FCF
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Shake Shack Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
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Competitive Comparison of Shake Shack's Cyclically Adjusted Price-to-FCF

For the Restaurants subindustry, Shake Shack's Cyclically Adjusted Price-to-FCF, along with its competitors' market caps and Cyclically Adjusted Price-to-FCF data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Shake Shack's Cyclically Adjusted Price-to-FCF Distribution in the Restaurants Industry

For the Restaurants industry and Consumer Cyclical sector, Shake Shack's Cyclically Adjusted Price-to-FCF distribution charts can be found below:

* The bar in red indicates where Shake Shack's Cyclically Adjusted Price-to-FCF falls into.



Shake Shack Cyclically Adjusted Price-to-FCF Calculation

Like the Shiller PE Ratio, the Cyclically Adjusted Price-to-FCF takes the Free Cash Flow per Share from the past 10 years, adjusts it for inflation, and then calculates the average. This average is then used for the P/FCF calculation. Because it considers this 10-year average, it's often referred to as the CAPFCF Ratio.

The Shiller PE Ratio was first used by professor Robert Shiller to measure the valuation of the overall market. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted Price-to-FCF.

Shake Shack's Cyclically Adjusted FCF per Share for the quarter that ended in Dec. 2023 is calculated as:

For example, Shake Shack's adjusted Free Cash Flow per Share data for the three months ended in Dec. 2023 was:

Adj_FreeCashFlowPerShare=Free Cash Flow per Share/CPI of Dec. 2023 (Change)*Current CPI (Dec. 2023)
=0.191/129.4194*129.4194
=0.191

Current CPI (Dec. 2023) = 129.4194.

Shake Shack Quarterly Data

Free Cash Flow per Share CPI Adj_FreeCashFlowPerShare
201403 -0.279 99.695 -0.362
201406 -2.211 100.560 -2.846
201409 -2.664 100.428 -3.433
201412 -0.755 99.070 -0.986
201503 -0.283 99.621 -0.368
201506 0.306 100.684 0.393
201509 0.332 100.392 0.428
201512 0.213 99.792 0.276
201603 -0.271 100.470 -0.349
201606 0.153 101.688 0.195
201609 0.137 101.861 0.174
201612 -0.055 101.863 -0.070
201703 -0.133 102.862 -0.167
201706 0.464 103.349 0.581
201709 0.153 104.136 0.190
201712 -0.131 104.011 -0.163
201803 0.051 105.290 0.063
201806 0.108 106.317 0.131
201809 -0.063 106.507 -0.077
201812 -0.158 105.998 -0.193
201903 -0.256 107.251 -0.309
201906 -0.397 108.070 -0.475
201909 0.372 108.329 0.444
201912 -0.253 108.420 -0.302
202003 -0.339 108.902 -0.403
202006 -0.214 108.767 -0.255
202009 0.030 109.815 0.035
202012 -0.342 109.897 -0.403
202103 -0.309 111.754 -0.358
202106 0.126 114.631 0.142
202109 -0.445 115.734 -0.498
202112 -0.459 117.630 -0.505
202203 -0.511 121.301 -0.545
202206 -0.003 125.017 -0.003
202209 -0.518 125.227 -0.535
202212 -0.645 125.222 -0.667
202303 -0.369 127.348 -0.375
202306 0.044 128.729 0.044
202309 -0.225 129.860 -0.224
202312 0.191 129.419 0.191

Add all the adjusted free cash flow per share together and divide 10 will get our Cyclically Adjusted FCF per Share.

Please note that we use the CPI data of the country/region where the company is headquartered. If the CPI data for that country/region is not available, then we will use the CPI data of the United States as default.


Shake Shack  (NYSE:SHAK) Cyclically Adjusted Price-to-FCF Explanation

Compared with the regular Price-to-Free-Cash-Flow, which works poorly for cyclical businesses, the Cyclically Adjusted Price-to-FCF smoothed out the fluctuations of free cash flow during business cycles. Therefore it is more accurate in reflecting the valuation of the company.

If a company has consistent business performance, the Cyclically Adjusted Price-to-FCF should give similar results to regular Price-to-Free-Cash-Flow.


Shake Shack Cyclically Adjusted Price-to-FCF Related Terms

Thank you for viewing the detailed overview of Shake Shack's Cyclically Adjusted Price-to-FCF provided by GuruFocus.com. Please click on the following links to see related term pages.


Shake Shack (Shake Shack) Business Description

Industry
Traded in Other Exchanges
Address
225 Varick Street, Suite 301, New York, NY, USA, 10014
Shake Shack Inc is a roadside burger stands. It is serving a classic American menu of premium burgers, hot dogs, crispy chicken, frozen custard, crinkle-cut fries, shakes, beer, wine and more. The company's burgers are made with a whole-muscle blend of all-natural, hormone and antibiotic-free Angus beef, ground fresh daily, cooked to order and served on a non-genetically modified organism (GMO) potato bun. Its menu focuses on food and beverages, crafted from a range of classic American foods. The company serves draft Root Beer, seasonal freshly-squeezed lemonade, organic fresh brewed iced tea, cold brew coffee, organic apple juice, and Shack20 bottled water.
Executives
Jeffrey Flug director C/O PENNANTPARK INVESTMENT CORPORATION, 445 PARK AVENUE, 10TH FLOOR, NEW YORK NY 10022
Chapman Charles J Iii director 1502 HUNTER DRIVE, WAYZATA MN 55391
Zach Koff officer: Chief Operating Officer C/O SHAKE SHACK INC., 24 UNION SQUARE EAST, 5TH FLOOR, NEW YORK NY 10003
Jeffrey D Lawrence director 30 FRANK LLOYD WRIGHT DR, ANN ARBOR MI 48105
Lori George Billingsley director 777 HIDDEN RIDGE, IRVING TX 75038
Daniel Harris Meyer director 24 UNION SQUARE EAST, SIXTH FLOOR, NEW YORK NY 10003
Jenna Lyons director C/O J.CREW GROUP, INC., 770 BROADWAY, NEW YORK NY 10003
Katherine Irene Fogertey officer: Chief Financial Officer 225 VARICK STREET, SUITE 301, NEW YORK NY 10014
Randall J Garutti director, officer: Chief Executive Officer C/O SHAKE SHACK INC., 24 UNION SQUARE EAST, 5TH FLOOR, NEW YORK NY 10003
Tara Comonte officer: CHIEF FINANCIAL OFFICER C/O SHAKE SHACK INC., 24 UNION SQUARE EAST,5TH FLOOR, NEW YORK NY 10003
Tristan Walker director 330 WEST 34TH STREET, NEW YORK NY 10001
Robert T Vivian director C/O SHAKE SHACK INC., 24 UNION SQUARE EAST, 5TH FLOOR, NEW YORK NY 10003
Sumaiya Balbale director 697 CALMAR AVENUE, OAKLAND CA 94610
Select Equity Group, L.p. director, other: See Remarks 380 LAFAYETTE STREET, 6TH FLOOR, NEW YORK NY 10003
Green Equity Investors Vi, L.p. director, 10 percent owner 11111 SANTA MONICA BOULEVARD, SUITE 2000, LOS ANGELES CA 90025

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