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Aramark
NYSE:ARMK

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Aramark
NYSE:ARMK
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Price: 45.69 USD 1.6% Market Closed
Market Cap: $12B

EV/FCFF

75.8
Current
34%
More Expensive
vs 3-y average of 56.8

Enterprise Value to Free Cash Flow to Firm (EV/FCFF) ratio compares a company`s total enterprise value to the free cash flow available to all investors, both debt and equity holders. It shows how much investors are paying for each dollar of cash flow the business generates before interest payments.

EV/FCFF
75.8
=
Enterprise Value
$16.5B
/
Free Cash Flow to Firm
$234.5m

Enterprise Value to Free Cash Flow to Firm (EV/FCFF) ratio compares a company`s total enterprise value to the free cash flow available to all investors, both debt and equity holders. It shows how much investors are paying for each dollar of cash flow the business generates before interest payments.

EV/FCFF
75.8
=
Enterprise Value
$16.5B
/
Free Cash Flow to Firm
$234.5m

Valuation Scenarios

Aramark is trading above its 3-year average

If EV/FCFF returns to its 3-Year Average (56.8), the stock would be worth $34.21 (25% downside from current price).

Statistics
Positive Scenarios
0/4
Maximum Downside
-69%
Maximum Upside
No Upside Scenarios
Average Downside
47%
Scenario EV/FCFF Value Implied Price Upside/Downside
Current Multiple 75.8 $45.69
0%
3-Year Average 56.8 $34.21
-25%
5-Year Average 50.4 $30.38
-34%
Industry Average 30.5 $18.4
-60%
Country Average 23.2 $13.99
-69%

Forward EV/FCFF
Today’s price vs future free cash flow to firm

Not enough data available to calculate forward EV/FCFF

Peer Comparison

All Multiples
EV/FCFF
P/E
All Countries
Close

Market Distribution

Higher than 90% of companies in the United States of America
Percentile
90th
Based on 8 393 companies
90th percentile
75.8
Low
0 — 15.4
Typical Range
15.4 — 35.1
High
35.1 —
Distribution Statistics
the United States of America
Min 0
30th Percentile 15.4
Median 23.2
70th Percentile 35.1
Max 3 178 983.5

Aramark
Glance View

Aramark, a name synonymous with service excellence, has carved a niche for itself in the competitive world of food, facilities, and uniform services. Originating from humble beginnings in the 1930s, the company has grown into a global giant by maintaining an unwavering focus on customer satisfaction and diverse service solutions. Aramark works with businesses, schools, hospitals, and leisure venues, tailoring its offerings to meet the unique needs of each sector. Whether it's managing high-volume dining operations at educational institutions, providing essential cleaning services at healthcare facilities, or offering uniform rentals and cleaning for industries, Aramark's multifaceted approach ensures a consistent stream of revenue. By emphasizing sustainability and innovation, the company continuously adapts its services to meet emerging trends and client demands. Beyond the mechanics of its core services, Aramark's business model thrives on its ability to form enduring partnerships with clients. Its collaborative approach involves understanding the specific challenges of each client and developing customized solutions that drive efficiency and enhance experience. This emphasis on partnership extends to its workforce, where a focus on training and development enhances service delivery and strengthens loyalty. The firm's financial health is buoyed by long-term contracts, which provide stability and predictability in cash flow. Moreover, Aramark's strategic acquisitions and global expansions have ensured a vast market presence, allowing it to tap into new opportunities and diversify its revenue base. This strategic focus on building strong relationships and continuously evolving to meet client needs is the cornerstone of Aramark's enduring success.

ARMK Intrinsic Value
55.21 USD
Undervaluation 17%
Intrinsic Value
Price $45.69
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