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HONDA TO SET UP $15B EV PRODUCTION BASE IN CANADA

Automaker to get up to $5B in government assistance for EV battery, assembly plants

How Shake Shack’s Valuation Multiple Compares with Its Peers

Ralph Nathan
Updated
How Shake Shack’s Valuation Multiple Compares with Its Peers

With Shake Shack (SHAK) still in the growth phase of its business life cycle, we’ll use the forward-EV-to-sales multiple. The forward-EV-to-sales multiple is calculated by dividing the company’s current enterprise value from analysts’ earnings estimate for the next four quarters. The lower-than-expected sales guidance provided by Shake Shack’s management for 2018, as well as fear of cannibalization from newly opened restaurants, appear to have concerned investors regarding its future earnings.

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