Texas Roadhouse Inc
NASDAQ:TXRH

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Texas Roadhouse Inc
NASDAQ:TXRH
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Price: 160.2 USD -2.2%
Market Cap: $10.6B

EV/EBIT

21.9
Current
4%
Cheaper
vs 3-y average of 22.8

Enterprise Value to EBIT (EV/EBIT) ratio compares a company`s total enterprise value to its earnings before interest and taxes. It shows how much investors are paying for each dollar of the company`s earnings, including both equity and debt.

EV/EBIT
21.9
=
Enterprise Value
$11.8B
/
EBIT
$475.1m

Enterprise Value to EBIT (EV/EBIT) ratio compares a company`s total enterprise value to its earnings before interest and taxes. It shows how much investors are paying for each dollar of the company`s earnings, including both equity and debt.

EV/EBIT
21.9
=
Enterprise Value
$11.8B
/
EBIT
$475.1m

Valuation Scenarios

Texas Roadhouse Inc is trading below its 3-year average

If EV/EBIT returns to its 3-Year Average (22.8), the stock would be worth $166.54 (4% upside from current price).

Statistics
Positive Scenarios
2/4
Maximum Downside
-17%
Maximum Upside
+4%
Average Downside
5%
Scenario EV/EBIT Value Implied Price Upside/Downside
Current Multiple 21.9 $160.2
0%
3-Year Average 22.8 $166.54
+4%
5-Year Average 22.4 $164.05
+2%
Industry Average 18.1 $132.23
-17%
Country Average 19.6 $143.59
-10%

Forward EV/EBIT
Today’s price vs future ebit

Today's Enterprise Value EBIT Forward EV/EBIT
$11.8B
/
Dec 2025
$475.1m
=
21.9
Current
$11.8B
/
Dec 2026
$501.1m
=
23.6
Forward
$11.8B
/
Dec 2027
$607m
=
19.5
Forward
$11.8B
/
Dec 2028
$731.4m
=
16.2
Forward

Forward EV/EBIT shows whether today’s EV/EBIT still looks high or low once future ebit are taken into account.

Peer Comparison

All Multiples
EV/EBIT
P/E
All Countries
Close
Market Cap EV/EBIT P/E
US
Texas Roadhouse Inc
NASDAQ:TXRH
10.8B USD 21.9 26.1
US
McDonald's Corp
NYSE:MCD
218.6B USD 20.4 25.1
US
Starbucks Corp
NASDAQ:SBUX
112.7B USD 34.5 80.8
UK
Compass Group PLC
LSE:CPG
46.4B GBP 16.7 0.3
US
Chipotle Mexican Grill Inc
NYSE:CMG
46.7B USD 23.2 30.4
US
Yum! Brands Inc
NYSE:YUM
44.8B USD 20.8 28.4
CA
Restaurant Brands International Inc
NYSE:QSR
27.3B USD 15.9 46.3
IN
Eternal Ltd
NSE:ETERNAL
2.3T INR -369.2 1 022
US
Darden Restaurants Inc
NYSE:DRI
23.2B USD 17.8 20.4
CN
Yum China Holdings Inc
NYSE:YUMC
17.2B USD 12 18.5
EV/EBIT Multiple
EBIT Growth EV/EBIT to Growth
US
Texas Roadhouse Inc
NASDAQ:TXRH
Average EV/EBIT: 20.4
21.9
15%
1.5
US
McDonald's Corp
NYSE:MCD
20.4
8%
2.6
US
Starbucks Corp
NASDAQ:SBUX
34.5
17%
2
UK
Compass Group PLC
LSE:CPG
16.7
13%
1.3
US
Chipotle Mexican Grill Inc
NYSE:CMG
23.2
11%
2.1
US
Yum! Brands Inc
NYSE:YUM
20.8
9%
2.3
CA
Restaurant Brands International Inc
NYSE:QSR
15.9
8%
2
IN
Eternal Ltd
NSE:ETERNAL
Negative Multiple: -369.2 N/A N/A
US
Darden Restaurants Inc
NYSE:DRI
17.8
9%
2
CN
Yum China Holdings Inc
NYSE:YUMC
12
9%
1.3

Market Distribution

In line with most companies in the United States of America
Percentile
57th
Based on 8 638 companies
57th percentile
21.9
Low
0 — 13.6
Typical Range
13.6 — 27.8
High
27.8 —
Distribution Statistics
the United States of America
Min 0
30th Percentile 13.6
Median 19.6
70th Percentile 27.8
Max 1 826 183.2

Texas Roadhouse Inc
Glance View

Texas Roadhouse Inc., founded in 1993 by W. Kent Taylor in Clarksville, Indiana, has carved out a distinctive niche in the casual dining sector. From its humble beginnings, the company has grown to become a beloved national steakhouse chain, renowned for offering an authentic Western dining experience. The establishment prides itself on providing hearty American fare at reasonable prices, focusing on hand-cut steaks, fall-off-the-bone ribs, and freshly baked bread, complete with a bucket of peanuts at every table. What sets Texas Roadhouse apart is its commitment to consistency in quality and service – attributes that resonate well with its customer base. By fostering a lively and welcoming atmosphere infused with country music and energetic line dancing, Texas Roadhouse seeks to create not just meals, but memorable experiences, encouraging repeat visits and strong word-of-mouth promotion. Financially, Texas Roadhouse seizes revenue through its vibrant dine-in operations, which are the backbone of its business model. Each establishment enjoys a local management model, empowering managers to tailor their operations to community preferences while ensuring the overall brand consistency beloved by patrons nationwide. This decentralized approach promotes a sense of ownership and accountability that incentivizes high performance at every location. Additionally, efforts to cultivate a loyal customer base through exceptional service have translated into significant sales figures, augmented by strategically located restaurants that capitalize on high foot traffic and accessible suburban locales. Operational efficiency is further enhanced by effective supply chain management and keen oversight of cost control measures, allowing each restaurant to maximize margins while maintaining value-oriented pricing.

TXRH Intrinsic Value
169.87 USD
Undervaluation 6%
Intrinsic Value
Price $160.2
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