Texas Roadhouse Inc
NASDAQ:TXRH

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Texas Roadhouse Inc
NASDAQ:TXRH
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Price: 158.31 USD 0.28% Market Closed
Market Cap: $10.4B

P/S

1.8
Current
12%
Cheaper
vs 3-y average of 2

Price to Sales (P/S) ratio shows how much investors pay for each dollar of a company`s sales. It`s calculated by dividing the company`s market value by its total revenue.

P/S
1.8
=
Market Cap
$12B
/
Revenue
$5.9B

Price to Sales (P/S) ratio shows how much investors pay for each dollar of a company`s sales. It`s calculated by dividing the company`s market value by its total revenue.

P/S
1.8
=
Market Cap
$12B
/
Revenue
$5.9B

Valuation Scenarios

Texas Roadhouse Inc is trading below its 3-year average

If P/S returns to its 3-Year Average (2), the stock would be worth $179.76 (14% upside from current price).

Statistics
Positive Scenarios
3/4
Maximum Downside
-4%
Maximum Upside
+37%
Average Upside
14%
Scenario P/S Value Implied Price Upside/Downside
Current Multiple 1.8 $158.31
0%
3-Year Average 2 $179.76
+14%
5-Year Average 1.9 $172.16
+9%
Industry Average 1.7 $152.58
-4%
Country Average 2.4 $216.99
+37%

Forward P/S
Today’s price vs future revenue

Today's Market Cap Revenue Forward P/S
$12B
/
Dec 2025
$5.9B
=
1.8
Current
$12B
/
Dec 2026
$6.7B
=
1.8
Forward
$12B
/
Dec 2027
$7.3B
=
1.6
Forward
$12B
/
Dec 2028
$7.9B
=
1.5
Forward
$12B
/
Dec 2029
$8.4B
=
1.4
Forward
$12B
/
Dec 2030
$9.3B
=
1.3
Forward

Forward P/S shows whether today’s P/S still looks high or low once future revenue are taken into account.

Peer Comparison

All Multiples
P/S
P/E
All Countries
Close
Market Cap P/S P/E
US
Texas Roadhouse Inc
NASDAQ:TXRH
10.4B USD 1.8 25.8
US
McDonald's Corp
NYSE:MCD
208.2B USD 7.7 24.3
US
Starbucks Corp
NASDAQ:SBUX
110.8B USD 2.9 80.9
UK
Compass Group PLC
LSE:CPG
45.2B GBP 0 0.3
US
Chipotle Mexican Grill Inc
NYSE:CMG
42.9B USD 3.6 27.9
US
Yum! Brands Inc
NYSE:YUM
43.3B USD 5.3 27.8
CA
Restaurant Brands International Inc
NYSE:QSR
27.1B USD 2.9 34.9
IN
Eternal Ltd
NSE:ETERNAL
2.3T INR 5.4 1 006.6
US
Darden Restaurants Inc
NYSE:DRI
22.5B USD 1.8 20.4
JP
Friendly Corp
TSE:8209
2.9T JPY 0.4 -6.5

Market Distribution

In line with most companies in the United States of America
Percentile
39th
Based on 11 520 companies
39th percentile
1.8
Low
0 — 1.2
Typical Range
1.2 — 4.1
High
4.1 —
Distribution Statistics
the United States of America
Min 0
30th Percentile 1.2
Median 2.4
70th Percentile 4.1
Max 4 613 274.2

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 7%
Intrinsic Value
Price $158.31
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