The capital turnover (annual revenue relative to shareholder's equity) for RUTH is 4.97 -- better than 91.58% of US stocks.
RUTH's one year PEG ratio, measuring expected growth in earnings next year relative to current common stock price is 482.51 -- higher than 93.81% of US-listed equities with positive expected earnings growth.
RUTH's current price/earnings ratio is 4.39, which is higher than just 10.96% of US stocks with positive earnings.
Stocks that are quantitatively similar to RUTH, based on their financial statements, market capitalization, and price volatility, are EXLS, RNET, NCSM, NETE, and TPIC.
Ruth's Hospitality Group operates and franchises restaurants worldwide. The company owns the Ruths Chris Steak House, Mitchells Fish Market, Columbus Fish Market, Mitchells Steakhouse, and Camerons Steakhouse concepts. The company was founded in 1965 and is based in Winter Park, Florida.
RUTH Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Ruths Hospitality Group Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Ruths Hospitality Group Inc ranked in the 74th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 379% on a DCF basis. In terms of the factors that were most noteworthy in this DCF analysis for RUTH, they are:
36% of the company's capital comes from equity, which is greater than only 24.04% of stocks in our cash flow based forecasting set.
Ruths Hospitality Group Inc's weighted average cost of capital (WACC) is 5%; for context, that number is higher than only 2.13% of tickers in our DCF set.
The company's cost of debt, derived from its interest coverage, tax rate, and market capitalization, is greater than merely 0% of stocks in its sector (Consumer Cyclical).
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Consumer Cyclical that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as RUTH, try HBI, EAT, NCMI, UONE, and CAKE.