Restaurants · NYSE
Current Price
$91.11
Intrinsic Value
Use the calculator below to estimate
Run a full DCF analysis on CAVA Group, Inc. with auto-filled fundamentals, adjustable assumptions, and sensitivity heatmap.
Open DCF Calculator for CAVACAVA Group, Inc. owns and operates a chain of Mediterranean restaurants. The company offers salads, dips, spreads, toppings, and dressings. It sells its products through whole food markets and grocery stores. The company also provides online food ordering services. Cava Group, Inc. was founded in 2006 and is based in Washington, District of Columbia.
ROIC (TTM)
5.7%
ROE (TTM)
8.4%
FCF Yield
0.25%
Based on trailing twelve-month data, CAVA shows a free cash flow per share of N/A and a ROIC of 5.7%, key inputs for stock valuation using the DCF method. The P/FCF ratio of N/A and FCF yield of 0.25% are important context metrics when evaluating CAVA's stock valuation relative to peers.
The intrinsic value of CAVA depends on assumptions about future growth rate, discount rate (WACC), and terminal value. A DCF model discounts projected free cash flows back to present value — small changes in WACC can shift the estimate by 20% or more, which is why sensitivity analysis is essential.
Whether CAVA is undervalued depends on comparing the DCF-derived intrinsic value to the current market price of $91.11. A positive margin of safety (intrinsic value above market price) suggests potential undervaluation, but the degree of confidence depends on the reliability of your growth and discount rate assumptions.
To perform a DCF valuation on CAVA Group, Inc.: (1) Start with the trailing free cash flow per share as the base, (2) project future FCF growth over 5-10 years based on Restaurants industry trends and company fundamentals, (3) apply a discount rate (WACC) reflecting CAVA's risk profile, and (4) add a terminal value for cash flows beyond the projection period.
DCF (Discounted Cash Flow) estimates what a company is worth today based on its future cash generation. For CAVA Group, Inc., this means projecting how much free cash flow the Restaurants will produce over the next 5-10 years, then discounting those amounts to today's dollars. CAVA's ROIC of 5.7% suggests the company may face challenges generating returns above its cost of capital.
WACC (Weighted Average Cost of Capital) is the discount rate in a DCF model — it reflects the minimum return investors require. For CAVA, the capital structure and equity risk premium determine WACC. A 1% increase in WACC typically reduces the intrinsic value by 10-15%.
