Using the industry peer median P/E multiple (trailing + forward), Darden Restaurants, Inc. (DRI) has a fair value of $250.01 based on 5 comparable companies in the Restaurants industry.
USD in millions except Fair Price. Subject company highlighted.
| Mkt Cap ($M) | Trailing P/E | Forward P/E | |
|---|---|---|---|
| Darden Restaurants, Inc.DRI | 23,631 | 22.5x | 18.8x |
| McDonald's CorporationMCD | 221,367 | 26.0x | 23.5x |
| Starbucks CorporationSBUX | 103,551 | 55.8x | 42.2x |
| Yum! Brands, Inc.YUM | 43,569 | 28.2x | 23.5x |
| Chipotle Mexican Grill, Inc.CMG | 42,703 | 28.3x | 28.3x |
| Domino's Pizza, Inc.DPZ | 12,191 | 20.6x | 18.3x |
| Industry Median | 28.2x | 23.5x | |
| (*) Profit after tax | 1,050 | 1,257 | |
| Equity Value | 29,623 | 29,579 | |
| (/) Outstanding shares | 118 | 118 | |
| Fair Price | $250 | $250 | |
This P/E relative valuation uses the industry peer median Price-to-Earnings ratio to estimate fair value. Both trailing (last 12 months) and forward (next fiscal year analyst estimates) P/E multiples are computed independently.
The industry median trailing P/E is applied to the company's TTM net income, and the forward P/E to analyst-estimated net income. Each produces an equity value divided by shares outstanding to yield a fair price per share. The selected fair value is the average of the trailing and forward legs.