Is Arcos Dorados Holdings, Inc. overvalued or undervalued?

As of 14 May 2025, the valuation grade for Arcos Dorados Holdings, Inc. has moved from expensive to fair. The company is currently fairly valued. Key ratios include a P/E ratio of 12, an EV to EBITDA of 4.97, and a ROE of 25.78%. In comparison to peers, Brinker International, Inc. has a significantly higher P/E ratio of 32.36, while Bloomin' Brands, Inc. presents a more attractive valuation with an EV to EBITDA of 4.84.
Despite recent stock performance showing a decline of 15.72% over the past year compared to a 10.26% gain in the S&P 500, the company's fundamentals suggest it is fairly valued at this time. The current price of $7.56 aligns with its valuation metrics, indicating no immediate overvaluation or undervaluation concerns.