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:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Ruths Hospitality Group Inc. To summarize, we found that Ruths Hospitality Group Inc ranked in the 15th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 85%. In terms of the factors that were most noteworthy in this DCF analysis for RUTH, they are:
In the past 5.5 years, Ruths Hospitality Group Inc has a compound free cash flow growth rate of -0.03%; that's better than only 20.37% of cash flow producing equities in the Consumer Cyclical sector, where it is classified.
Ruths Hospitality Group Inc's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -3.63. This coverage rate is greater than that of merely 14.37% of stocks we're observing for the purpose of forecasting via discounted cash flows.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
DRI, VC, BBBY, DIN, and EVC can be thought of as valuation peers to RUTH, in the sense that they are in the Consumer Cyclical sector and have a similar price forecast based on DCF valuation.