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Shake Shack (Shake Shack) Cyclically Adjusted PS Ratio : 3.93 (As of Apr. 27, 2024)


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What is Shake Shack Cyclically Adjusted PS Ratio?

As of today (2024-04-27), Shake Shack's current share price is $104.88. Shake Shack's Cyclically Adjusted Revenue per Share for the quarter that ended in Dec. 2023 was $26.71. Shake Shack's Cyclically Adjusted PS Ratio for today is 3.93.

The historical rank and industry rank for Shake Shack's Cyclically Adjusted PS Ratio or its related term are showing as below:

SHAK' s Cyclically Adjusted PS Ratio Range Over the Past 10 Years
Min: 1.87   Med: 2.47   Max: 4.09
Current: 3.8

During the past years, Shake Shack's highest Cyclically Adjusted PS Ratio was 4.09. The lowest was 1.87. And the median was 2.47.

SHAK's Cyclically Adjusted PS Ratio is ranked worse than
91.29% of 241 companies
in the Restaurants industry
Industry Median: 0.79 vs SHAK: 3.80

The Shiller PE Ratio was first used by professor Robert Shiller. He uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings per share of a company over the past 10 years. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted PS Ratio. The Cyclically Adjusted Revenue per Share is the average of the inflation adjusted revenue per share of a company over the past 10 years.

Shake Shack's adjusted revenue per share data for the three months ended in Dec. 2023 was $6.514. Add all the adjusted revenue per share for the past 10 years together and divide 10 will get our Cyclically Adjusted Revenue per Share, which is $26.71 for the trailing ten years ended in Dec. 2023.

Shiller PE for Stocks: The True Measure of Stock Valuation


Shake Shack Cyclically Adjusted PS Ratio Historical Data

The historical data trend for Shake Shack's Cyclically Adjusted PS Ratio 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.

* Premium members only.

Shake Shack Cyclically Adjusted PS Ratio Chart

Shake Shack Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Cyclically Adjusted PS Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only - - - - 2.77

Shake Shack Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Cyclically Adjusted PS Ratio Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only - 1.97 2.74 2.03 2.77

Competitive Comparison of Shake Shack's Cyclically Adjusted PS Ratio

For the Restaurants subindustry, Shake Shack's Cyclically Adjusted PS Ratio, along with its competitors' market caps and Cyclically Adjusted PS Ratio 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 PS Ratio Distribution in the Restaurants Industry

For the Restaurants industry and Consumer Cyclical sector, Shake Shack's Cyclically Adjusted PS Ratio distribution charts can be found below:

* The bar in red indicates where Shake Shack's Cyclically Adjusted PS Ratio falls into.



Shake Shack Cyclically Adjusted PS Ratio Calculation

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

Shake Shack's Cyclically Adjusted PS Ratio for today is calculated as

Cyclically Adjusted PS Ratio=Share Price/ Cyclically Adjusted Revenue per Share
=104.88/26.71
=3.93

* 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.

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

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

Adj_RevenuePerShare=Revenue per Share/CPI of Dec. 2023 (Change)*Current CPI (Dec. 2023)
=6.514/129.4194*129.4194
=6.514

Current CPI (Dec. 2023) = 129.4194.

Shake Shack Quarterly Data

Revenue per Share CPI Adj_RevenuePerShare
201403 19.326 99.695 25.088
201406 22.154 100.560 28.512
201409 25.419 100.428 32.757
201412 3.096 99.070 4.044
201503 3.163 99.621 4.109
201506 3.632 100.684 4.669
201509 3.603 100.392 4.645
201512 3.079 99.792 3.993
201603 2.603 100.470 3.353
201606 2.884 101.688 3.670
201609 3.037 101.861 3.859
201612 2.887 101.863 3.668
201703 2.957 102.862 3.720
201706 3.471 103.349 4.347
201709 3.573 104.136 4.441
201712 3.655 104.011 4.548
201803 3.563 105.290 4.380
201806 4.044 106.317 4.923
201809 4.004 106.507 4.865
201812 4.107 105.998 5.014
201903 4.363 107.251 5.265
201906 4.924 108.070 5.897
201909 4.793 108.329 5.726
201912 4.367 108.420 5.213
202003 4.157 108.902 4.940
202006 2.460 108.767 2.927
202009 3.409 109.815 4.018
202012 4.090 109.897 4.817
202103 3.629 111.754 4.203
202106 4.281 114.631 4.833
202109 4.954 115.734 5.540
202112 5.193 117.630 5.713
202203 5.193 121.301 5.541
202206 5.882 125.017 6.089
202209 5.801 125.227 5.995
202212 6.072 125.222 6.276
202303 6.439 127.348 6.544
202306 6.193 128.729 6.226
202309 6.281 129.860 6.260
202312 6.514 129.419 6.514

Add all the adjusted revenue per share together and divide 10 will get our Cyclically Adjusted Revenue 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 PS Ratio Explanation

Compared with the regular PS Ratio, which works poorly for cyclical businesses, the Cyclically Adjusted PS Ratio smoothed out the fluctuations of revenue 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 PS Ratio should give similar results to regular PS Ratio.


Shake Shack Cyclically Adjusted PS Ratio Related Terms

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


Shake Shack (Shake Shack) Business Description

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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