Is Cava Group (CAVA) Pricing Reflect Recent Volatility And Rich Earnings Multiple?

Simply Wall St.02-06

If you are wondering whether CAVA Group’s current share price lines up with its underlying worth, this article is designed to walk you through that question step by step. The stock last closed at US$...

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The stock last closed at US$...</p>\n\n<a href=\"https://simplywall.st/stocks/us/consumer-services/nyse-cava/cava-group/news/is-cava-group-cava-pricing-reflect-recent-volatility-and-ric\">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 Reflect Recent Volatility And Rich Earnings Multiple?</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 Reflect Recent Volatility And Rich Earnings Multiple?\n</h2>\n\n<h4 class=\"meta\">\n\n\n2026-02-06 02:42 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://simplywall.st/stocks/us/consumer-services/nyse-cava/cava-group/news/is-cava-group-cava-pricing-reflect-recent-volatility-and-ric><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’s current share price lines up with its underlying worth, this article is designed to walk you through that question step by step. The stock last closed at US$...</p>\n\n<a href=\"https://simplywall.st/stocks/us/consumer-services/nyse-cava/cava-group/news/is-cava-group-cava-pricing-reflect-recent-volatility-and-ric\">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":"CAVA","symbol_name":"CAVA Group Inc.","start_time":0,"source_url":"https://simplywall.st/stocks/us/consumer-services/nyse-cava/cava-group/news/is-cava-group-cava-pricing-reflect-recent-volatility-and-ric","article_id":"2609587275","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-reflect-recent-volatility-and-ric","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2609587275","pubTimestamp":1770316961,"columns":[],"sourceInfo":{"source_id":"simplywall_highlight","name":"Simply Wall St."},"weMediaInfo":null,"summary":"If you are wondering whether CAVA Group’s current share price lines up with its underlying worth, this article is designed to walk you through that question step by step.\nThe stock last closed at US$65.41, with returns of 4.3% over the past week, 3.0% over the last month, 8.0% year to date, and a 54.2% decline over the past year. This points to mixed sentiment and shifting expectations.\nRecent coverage has focused on CAVA Group’s position within the US consumer services space and how...","collect":0,"end_time":0,"defaultTopTitle":"simplywall.st","property":["earning"],"viewcount":null,"language":"en","relate_stocks":{"CAVA":"CAVA Group Inc."},"translate_title":"Cava Group(CAVA)的定价是否反映了最近的波动性和丰富的市盈率？","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"CAVA":1.5},"content_text":"If you are wondering whether CAVA Group’s current share price lines up with its underlying worth, this article is designed to walk you through that question step by step. The stock last closed at US$65.41, with returns of 4.3% over the past week, 3.0% over the last month, 8.0% year to date, and a 54.2% decline over the past year. This points to mixed sentiment and shifting expectations. Recent coverage has focused on CAVA Group’s position within the US consumer services space and how investors are reacting to its relatively short trading history as a listed company. This backdrop helps explain why shorter term gains sit alongside a much weaker 1 year return figure. CAVA Group currently scores 0 out of 6 on our valuation checks, meaning it is not assessed as undervalued on any of those metrics. You can see that breakdown in detail here. Next, we will compare different valuation approaches before finishing with a way to think about value that goes beyond the usual ratios.  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 estimates what a company could be worth by projecting its future cash flows and then discounting those back to today’s dollars. It is essentially asking what all of CAVA Group’s future cash generation might be worth right now. For CAVA Group, the model used is a 2 Stage Free Cash Flow to Equity approach, based on last twelve month free cash flow of about $8.1 million. Analyst estimates and extrapolated figures in this model suggest free cash flow rising to $248.5 million in 2030, with intermediate projections such as $38.8 million in 2026 and $169.6 million in 2029, all expressed in US$. These yearly figures are discounted, then summed, to reach an estimated intrinsic value per share. On this basis, the DCF model points to a fair value of about $51.98 per share, compared with the recent share price of $65.41. That gap implies the stock is assessed as 25.8% overvalued relative to this cash flow based estimate. Result: OVERVALUED Our Discounted Cash Flow (DCF) analysis suggests CAVA Group may be overvalued by 25.8%. Discover 871 undervalued stocks or create your own screener to find better value opportunities. CAVA Discounted Cash Flow as at Feb 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, the P/E ratio is a useful way to think about value because it links what you pay per share to the earnings that the business is already generating. Investors usually accept a higher or lower P/E based on how they see the balance between future growth and risk, with faster expected growth or lower perceived risk often lining up with a higher “normal” multiple. CAVA Group currently trades on a P/E of 55.2x, compared with around 20.9x for the Hospitality industry and about 48.3x for its peer group. Simply Wall St also provides a “Fair Ratio” of 19.2x for CAVA Group. This Fair Ratio is a proprietary estimate of what a company’s P/E might look like once you factor in items such as its earnings growth profile, profit margins, industry characteristics, market cap and specific risk factors. Because the Fair Ratio is tailored to the company rather than being a broad average, it can offer a more targeted reference point than simple industry or peer comparisons. On that basis, CAVA Group’s current P/E of 55.2x sits well above the 19.2x Fair Ratio, which points to the shares being priced on the high side using this metric. Result: OVERVALUED NYSE:CAVA P/E Ratio as at Feb 2026 P/E ratios tell one story, but what if the real opportunity lies elsewhere? Discover 1435 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, so let us introduce you to Narratives. A Narrative is your own clear story about a company, where you spell out what you think happens to its revenue, earnings and margins, then link that story to a forecast and a fair value estimate. On Simply Wall St, millions of investors do this on the Community page, using Narratives as an easy tool that connects the company’s story to the numbers. Once you have a Narrative, you can compare your fair value to the current share price and decide whether the gap is large enough for you to consider buying or selling. Narratives also update automatically when fresh information such as news or earnings is added to the platform, so your story and fair value stay aligned with the latest data. For CAVA Group, one investor might build a Narrative that supports a higher fair value per share while another might use more cautious assumptions and land on a much lower figure, even though both are using the same underlying tool. 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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