Restaurants · NYSE
Current Price
$32.98
Intrinsic Value
Use the calculator below to estimate
Run a PE ratio stock valuation on Chipotle Mexican Grill, Inc. with auto-filled earnings data, adjustable target PE, and instant fair value estimate.
Open PE Calculator for CMGChipotle Mexican Grill, Inc., together with its subsidiaries, owns and operates Chipotle Mexican Grill restaurants. As of February 15, 2022, it owned and operated approximately 3,000 restaurants in the United States, Canada, the United Kingdom, France, Germany, and rest of Europe. The company was founded in 1993 and is headquartered in Newport Beach, California.
Earnings Yield
3.39%
ROE (TTM)
48.4%
Based on trailing twelve-month data, CMG has earnings per share of N/A and trades at a PE ratio of N/A. These are key inputs for stock valuation using the PE ratio method.
The trailing twelve-month PE ratio of CMG reflects how much investors pay per dollar of Chipotle Mexican Grill, Inc.'s earnings. This metric is most useful when compared to Restaurants peers and the company's own historical range.
Whether CMG is overvalued depends on comparing its PE ratio to Restaurants peers, historical averages, and growth expectations. A PE above the sector average may indicate overvaluation, but high-growth companies often command premium multiples. Consider pairing PE analysis with a DCF model for a more complete picture.
To value Chipotle Mexican Grill, Inc. using PE: (1) Compare the current PE against the Restaurants median to assess relative pricing, (2) check the PEG ratio to adjust for growth expectations, (3) review the 5-year PE range to identify where the stock sits historically, and (4) estimate fair value by multiplying a target PE by forward EPS estimates. This relative approach complements DCF's absolute valuation.
The PEG ratio divides the PE ratio by the expected earnings growth rate, providing a growth-adjusted valuation metric. A PEG below 1.0 may indicate undervaluation relative to growth, while above 2.0 may suggest overvaluation. PEG is most reliable for companies with stable, predictable earnings growth.
PE ratio gives a quick relative read — how CMG is priced versus Restaurants peers. DCF provides an absolute value based on projected free cash flows. For CMG, with a strong ROE of 48.4%, both methods are worth using — PE for a market-relative check, DCF to stress-test whether fundamentals justify the price. Each method has blind spots: PE ignores capital structure and cash flow quality, while DCF is sensitive to growth and discount rate assumptions.
