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CMG (Chipotle Mexican Grill) Graham Number : $8.02 (As of Sep. 2024)


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What is Chipotle Mexican Grill Graham Number?

Graham Number is a figure that measures a stock's fundamental value by taking into account the company's earnings per share and book value per share. The Graham number is the upper bound of the price range that a defensive investor should pay for the stock. According to the theory, any stock price below the Graham number is considered undervalued, and thus worth investing in.

As of today (2024-10-31), the stock price of Chipotle Mexican Grill is $55.77. Chipotle Mexican Grill's graham number for the quarter that ended in Sep. 2024 was $8.02. Therefore, Chipotle Mexican Grill's Price to Graham Number ratio for today is 6.96.

The historical rank and industry rank for Chipotle Mexican Grill's Graham Number or its related term are showing as below:

CMG' s Price-to-Graham-Number Range Over the Past 10 Years
Min: 1.47   Med: 5.74   Max: 10.83
Current: 6.95

During the past 13 years, the highest Price to Graham Number ratio of Chipotle Mexican Grill was 10.83. The lowest was 1.47. And the median was 5.74.

CMG's Price-to-Graham-Number is ranked worse than
92.23% of 206 companies
in the Restaurants industry
Industry Median: 1.845 vs CMG: 6.95

Graham Number is a combination of asset valuation and earnings power valuation. It is a very conservative way of valuing a stock.


Chipotle Mexican Grill Graham Number Historical Data

The historical data trend for Chipotle Mexican Grill's Graham Number can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Chipotle Mexican Grill Graham Number Chart

Chipotle Mexican Grill Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Graham Number
Get a 7-Day Free Trial Premium Member Only Premium Member Only 2.68 2.97 4.19 5.05 6.80

Chipotle Mexican Grill Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
Graham Number Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 24.95 25.77 27.04 7.98 8.02

Competitive Comparison of Chipotle Mexican Grill's Graham Number

For the Restaurants subindustry, Chipotle Mexican Grill's Price-to-Graham-Number, along with its competitors' market caps and Price-to-Graham-Number data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Chipotle Mexican Grill's Price-to-Graham-Number Distribution in the Restaurants Industry

For the Restaurants industry and Consumer Cyclical sector, Chipotle Mexican Grill's Price-to-Graham-Number distribution charts can be found below:

* The bar in red indicates where Chipotle Mexican Grill's Price-to-Graham-Number falls into.



Chipotle Mexican Grill Graham Number Calculation

Graham Number is a concept based on Ben Graham's conservative valuation of companies.

Chipotle Mexican Grill's Graham Number for the fiscal year that ended in Dec. 2023 is calculated as

Graham Number
=sqrt of (22.5* Tangible Book per Share *EPS without NRI)
=sqrt of (22.5*2.217*0.928)
=6.80

Chipotle Mexican Grill's Graham Number for the quarter that ended in Sep. 2024 is calculated as

Graham Number
=sqrt of (22.5*Tangible Book per Share*EPS without NRI (TTM))
=sqrt of (22.5*2.634*1.084)
=8.02

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Chipotle Mexican Grill  (NYSE:CMG) Graham Number Explanation

Ben Graham actually did not publish a formula like this. But he wrote in The Intelligent Investor (1948 version) regarding to the criteria for purchases:

Current price should not be more than 15 times average earnings of the past three years.

Current price should not be more than 1.5 times the book value last reported. However, a multiplier of earnings below 15 could justify a correspondingly higher multiplier of assets. As a rule of thumb we suggest that the product of the multiplier times the ratio of price to book value should not exceed 22.5. (This figure corresponds to 15 times earnings and 1.5 times book value. It would admit an issue selling at only 9 times earnings and 2.5 times asset value, etc.)

Unlike valuation methods such as DCF or Discounted Earnings, the Graham number does not take growth into the valuation. Unlike the valuation methods based on book value alone, it takes into account the earnings power. Therefore, the Graham Number is a combination of asset valuation and earnings power valuation.

In general, the Graham number is a very conservative way of valuing a stock. It cannot be applied to companies with negative book values.

Chipotle Mexican Grill's Price to Graham number Ratio for today is calculated as

Price to Graham number=Share Price (Today)/Graham number (Q: Sep. 2024 )
=55.77/8.02
=6.96

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Be Aware

Please keep these in mind:

1. Graham Number does not take growth into account. Therefore it underestimates the values of the companies that have good earnings growth. We feel that if the earnings per share grows more than 10% a year, Graham Number underestimates the value.
2. Graham Number punishes the companies that have temporarily low earnings. Therefore, an average of earnings makes more sense in the calculation of Graham Number.
3. Graham Numbers underestimates companies that are light with book.


Chipotle Mexican Grill Graham Number Related Terms

Thank you for viewing the detailed overview of Chipotle Mexican Grill's Graham Number provided by GuruFocus.com. Please click on the following links to see related term pages.


Chipotle Mexican Grill Business Description

Address
610 Newport Center Drive, Suite 1100, Newport Beach, CA, USA, 92660
Chipotle Mexican Grill is the largest fast-casual chain restaurant in the United States, with systemwide sales of $9.9 billion in 2023. The Mexican concept is predominately company-owned, although it recently inked a development agreement with Alshaya Group in the Middle East. It had a footprint of nearly 3,440 stores at the end of 2023, heavily indexed to the United States, although it maintains a small presence in Canada, the UK, France, and Germany. Chipotle sells burritos, burrito bowls, tacos, quesadillas, and beverages, with a selling proposition built around competitive prices, high-quality food sourcing, speed of service, and convenience. The company generates its revenue entirely from restaurant sales and delivery fees.
Executives
Robin S Hickenlooper director 12300 LIBERTY BOULEVARD, ENGLEWOOD CO 80112
Curtis E Garner officer: Chief Technology Officer C/O AEROHIVE NETWORKS, INC., 330 GIBRALTAR DRIVE, SUNNYVALE CA 94089
Jack Hartung officer: CFO & Chief Development Ofcr 1543 WAZEE STREET, SUITE 200, DENVER CO 80202
Roger E Theodoredis officer: Chief Legal Officer & GC 1225 SEVENTEENTH STREET, SUITE 1000, DENVER CO 80202
Brian R Niccol director, officer: Chairman, CEO 1 GLEN BELL WAY, IRVINE CA 92618
Albert S Baldocchi director 1601 HIGH STREET, BOULDER CO 80304
Scott Boatwright officer: Chief Restaurant Officer 1401 WYNKOOP STREET, SUITE 500, DENVER CO 80202
Christopher W Brandt officer: Chief Marketing Officer 2202 NORTH WESTSHORE BLVD, TAMPA FL 33607
Gregg L Engles director 1225 SEVENTEENTH STREET, SUITE 1000, DENVER CO 80202
Laurie Schalow officer: Chief Corp Affairs, Food Sft 610 NEWPORT CENTER DRIVE, SUITE 1300, NEWPORT BEACH CA 92660
Patricia Filikrushel director DOLLAR GENERAL CORPORATION, 100 MISSION RIDGE, GOODLETTSVILLE TN 37072
Laura Fuentes director 7930 JONES BRANCH DRIVE, MCLEAN VA 22102
Marissa Andrada officer: Chief D&I and People Officer C/O KATE SPADE & COMPANY 2 PARK AVENUE, NEW YORK NY 10016
Pershing Square Capital Management, L.p. director 787 11TH AVENUE, 9TH FLOOR, NEW YORK NY 10019
Scott Harlan Maw director 1411 E. MISSION AVENUE, SPOKANE WA 99202