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RBI Stock: Bargain or Buzz?
30 Nov
Summary
- Restaurant Brands International stock climbed 9.6% last month.
- DCF analysis suggests stock is undervalued by 18.8%.
- Company scores 2 out of 6 on the firm's Value Score.
Restaurant Brands International (RBI) has experienced a notable share price increase of 9.6% over the past month and 10.4% year-to-date. This performance has intensified discussions regarding the company's growth prospects and evolving risk perceptions, driven by recent strategic expansions and partnerships. Wall Street and industry peers have reacted positively to these developments, suggesting a potential market reassessment of RBI's long-term outlook.
Despite recent positive momentum, RBI scores a low 2 out of 6 on a proprietary Value Score, indicating limited undervalued signals. A Discounted Cash Flow (DCF) analysis, which projects future cash flows, reveals an intrinsic value of $89.13 per share. This valuation suggests the stock is currently trading at an 18.8% discount to its estimated fair value, implying a significant undervaluation.
The company's latest twelve-month Free Cash Flow (FCF) stands at $1.30 Billion, with projections indicating growth to $2.39 Billion by 2028. While the Price-to-Earnings (PE) ratio is a common valuation metric for profitable companies, the DCF analysis provides a more comprehensive view, currently pointing towards an undervalued status for Restaurant Brands International stock.
