Is Cava Group (CAVA) Pricing In Too Much Growth After Its Recent Share Price Rebound

Simply Wall St.01-17

If you are wondering whether CAVA Group at around US$72 a share is a bargain or already pricing in a lot of optimism, you are not alone. The stock has returned 1.7% over the last 7 days and 35.7% over...

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The stock has returned 1.7% over the last 7 days and 35.7% over...</p>\n\n<a href=\"https://simplywall.st/stocks/us/consumer-services/nyse-cava/cava-group/news/is-cava-group-cava-pricing-in-too-much-growth-after-its-rece\">Source Link</a>\n\n</div>\n","source":"simplywall_highlight","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Is Cava Group (CAVA) Pricing In Too Much Growth After Its Recent Share Price Rebound</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nIs Cava Group (CAVA) Pricing In Too Much Growth After Its Recent Share Price Rebound\n</h2>\n\n<h4 class=\"meta\">\n\n\n2026-01-17 08:25 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://simplywall.st/stocks/us/consumer-services/nyse-cava/cava-group/news/is-cava-group-cava-pricing-in-too-much-growth-after-its-rece><strong>Simply Wall St.</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>If you are wondering whether CAVA Group at around US$72 a share is a bargain or already pricing in a lot of optimism, you are not alone. The stock has returned 1.7% over the last 7 days and 35.7% over...</p>\n\n<a href=\"https://simplywall.st/stocks/us/consumer-services/nyse-cava/cava-group/news/is-cava-group-cava-pricing-in-too-much-growth-after-its-rece\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BK4209","symbol_name":"餐馆","start_time":0,"source_url":"https://simplywall.st/stocks/us/consumer-services/nyse-cava/cava-group/news/is-cava-group-cava-pricing-in-too-much-growth-after-its-rece","article_id":"2604102779","we_media_id":null,"thumbnails":["https://images.simplywall.st/asset/industry/4214000-choice2-main-header/1585186565403"],"rights":{"source":"simplywall_highlight","url":"https://simplywall.st/stocks/us/consumer-services/nyse-cava/cava-group/news/is-cava-group-cava-pricing-in-too-much-growth-after-its-rece","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2604102779","pubTimestamp":1768609507,"columns":[],"sourceInfo":{"source_id":"simplywall_highlight","name":"Simply Wall St."},"weMediaInfo":null,"summary":"If you are wondering whether CAVA Group at around US$72 a share is a bargain or already pricing in a lot of optimism, you are not alone.\nThe stock has returned 1.7% over the last 7 days and 35.7% over the last 30 days, while the year to date return is 19.1% and the 1 year return is a 39.0% decline.\nRecent coverage has focused on CAVA Group as a newly public fast casual restaurant brand with strong consumer awareness, with attention on how quickly it is expanding its store base and scaling...","collect":0,"end_time":0,"defaultTopTitle":"simplywall.st","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK4209":"餐馆","BK4585":"ETF&股票定投概念","BK4588":"碎股","DCF":"Dreyfus Alcentra Global Credit Income 2024 Target Term Fund, Inc","CAVA":"CAVA Group Inc."},"translate_title":"卡瓦集团(CAVA)近期股价反弹后是否定价过高","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"CAVA":1.5,"DCF":1},"content_text":"If you are wondering whether CAVA Group at around US$72 a share is a bargain or already pricing in a lot of optimism, you are not alone. The stock has returned 1.7% over the last 7 days and 35.7% over the last 30 days, while the year to date return is 19.1% and the 1 year return is a 39.0% decline. Recent coverage has focused on CAVA Group as a newly public fast casual restaurant brand with strong consumer awareness, with attention on how quickly it is expanding its store base and scaling its concept nationally. Commentators have also highlighted that, as a relatively young listed company, sentiment around its growth story can swing quickly, which helps explain some of the sharp moves in the share price. Right now CAVA Group scores 0/6 on our valuation checks. You can see this in detail in our valuation score. In the next sections we will look at what different valuation methods say about that price tag, before finishing with a framework that many investors find even more useful for judging value.  CAVA Group scores just 0/6 on our valuation checks. See what other red flags we found in the full valuation breakdown. AdvertisementApproach 1: CAVA Group Discounted Cash Flow (DCF) Analysis A Discounted Cash Flow, or DCF, model takes estimates of the cash a business could produce in the future and discounts those back to what they may be worth in today’s dollars. For CAVA Group, the model starts with last twelve months Free Cash Flow of about $8.1 million. Analysts have provided forecasts for several years, and Simply Wall St extends these further, with projected Free Cash Flow of $248.5 million in 2030. Each of these future cash flows is discounted back using a 2 Stage Free Cash Flow to Equity model to reflect the risk and time value of money. Pulling those projections together gives an estimated intrinsic value of about $52.75 per share, compared with the current share price around $72. That gap implies the shares are roughly 36.7% above the DCF estimate. On this model the market price is higher than the cash flow based value. Result: OVERVALUED Our Discounted Cash Flow (DCF) analysis suggests CAVA Group may be overvalued by 36.7%. Discover 862 undervalued stocks or create your own screener to find better value opportunities. CAVA Discounted Cash Flow as at Jan 2026 Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for CAVA Group. Approach 2: CAVA Group Price vs Earnings For a profitable company like CAVA Group, the P/E ratio is a useful shorthand for how much investors are paying for each dollar of earnings. A higher or lower P/E often reflects what the market is building in for future growth and how much uncertainty it sees around those earnings. In general, stronger growth and lower perceived risk can justify a higher P/E, while slower growth or higher risk usually call for a lower, more cautious multiple. That is why simply looking at a headline P/E in isolation rarely tells you enough. CAVA Group currently trades on a P/E of about 60.8x. That compares with an average of about 54.1x for its peers and around 22.0x for the wider Hospitality industry. Simply Wall St also calculates a Fair Ratio for CAVA Group of 20.5x, which is the P/E it might trade on given its earnings growth profile, industry, profit margins, market cap and specific risks. The Fair Ratio is more tailored than a basic peer or industry comparison because it ties the multiple back to the company’s own characteristics rather than broad group averages. Set against this 20.5x Fair Ratio, the current 60.8x P/E suggests the shares are trading above that level. Result: OVERVALUED NYSE:CAVA P/E Ratio as at Jan 2026 P/E ratios tell one story, but what if the real opportunity lies elsewhere? Discover 1445 companies where insiders are betting big on explosive growth. Upgrade Your Decision Making: Choose your CAVA Group Narrative Earlier we mentioned that there is an even better way to understand valuation. Let us introduce you to Narratives, which are simply your own story for a company that links what you believe about its business to a set of revenue, earnings and margin forecasts, and then to a fair value that you can compare with the current price on Simply Wall St's Community page. On that page, millions of investors share their views, with each Narrative updating automatically as new news or earnings arrive. One CAVA Group investor might lean toward the higher US$125 fair value because they focus on expansion, menu pricing and technology, while another might sit near the US$72 end because they are more cautious about competition, execution and margins. Do you think there's more to the story for CAVA Group? Head over to our Community to see what others are saying! NYSE:CAVA 1-Year Stock Price Chart  This article by Simply Wall St is general in nature. We provide commentary based on historical data\n    and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your\n    financial situation. We aim to bring you long-term focused analysis driven by fundamental data.\n    Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.\n    Simply Wall St has no position in any stocks mentioned.New: AI Stock Screener & AlertsOur new AI Stock Screener scans the market every day to uncover opportunities.• Dividend Powerhouses (3%+ Yield)• Undervalued Small Caps with Insider Buying• High growth Tech and AI CompaniesOr build your own from over 50 metrics.Explore Now for FreeHave feedback on this article? Concerned about the content? Get in touch with us directly. 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