QualityDipStocks / Consumer Discretionary · Restaurants
CAVA Group CAVA
Outside our quality screen, so we don’t track its dips. It’s 40% below its 52-week high.
Outside our quality screen, trading well above our fair value estimate.
- Fair value est.
- $12.78−78%
- Market Value
- $57.96price +1%
- Off 52-wk high
- −40%
- Risk vs market
- Above marketbeta 1.33
4 bullish · 5 bearish See why
Key levels
Every level vs today’s $58.74
- Fair value est.base case$12.78−78.3%
- 52-wk lowlowest close, 1 year$43.59−25.8%
- Market Valueavg paid since Aug 11$57.96−1.3%
- PriceFri Oct 30 close$58.74you are here
- 52-wk highhighest close, 1 year$97.39+65.8%
Fair value estimate
How the range is computed
Ten-year free-cash-flow DCF. Same 10-year free-cash-flow model as the base: discount rate 9.5% ±1 point and growth 15.0% ±2 points. Bear = 10.5% and 13.0%; bull = 8.5% and 17.0% (both fade to 3%). A model estimate from public filings, not a forecast of where the price will go.
Price is above even the bull case.
What the price implies To be worth today’s price, CAVA’s free cash flow would need to grow about 45% a year for five years; our estimate uses 15%.
Risk vs market
How risk vs market is measured
One year of daily returns (Oct 30 to Oct 30, 252 sessions). Beta = how much CAVA moved for each 1% move in the S&P 500 (SPY); 1.0 moves with the market. Volatility is the yearly standard deviation of daily returns. Past behavior, not a forecast.
Swings more than the market, and its own price swings are 4.8× the S&P 500’s.
- Beta vs S&P 500
- 1.33
- Volatility
- 61% vs 13% SPY
- Correlation SPY
- 0.28
- Correlation QQQ
- 0.21
Bull vs bear
Rule-based from the data on this page, strongest first. Not advice.
Top bullish points 4 of 5
GrowthSales compounded 28% a year from FY2022 to FY2025.
ProfitabilityGross margin widened to 24.7% in FY2023 from 16.4% in FY2021 (SEC filings).
GrowthSales grew 27% to $1.4B over the last 12 months vs the 12 months before (SEC filings).
ProfitabilityOperating margin widened to 4.7% in FY2025 from 0.6% in FY2023 (SEC filings).
Top bearish points 5 of 5
ValuationOur DCF fair value estimate is $12.78, 78% below the price.
GrowthDiluted EPS fell 51% to $0.54 in FY2025.
ValuationP/E of 105.0× vs a 20.9× median for the 169 Consumer Discretionary companies we cover.
ValuationFree-cash-flow yield is just 0.7% (price / FCF 142×), so the price leans on future growth.
QualityDoesn’t pass our quality screen: no positive free cash flow; ROE under 12% and ROIC under 10%.
Who’s talking about it
Notable investors, executives, analysts and public figures on CAVA Group in the last 48 hours. Headlines as published, each linked. Their words, not ours.
No notable mentions in the last 48 hours. Checked Nov 1, 9:09 PM ET.
Compare with peers
Closest in size in Restaurants
All fundamentals
P/E 105.0 · FCF yield 0.7% · ROE 8%
Valuation
- P/E
- 105.0×Consumer Discretionary median 20.9×
- Price / FCF
- 141.8×
- FCF yield
- 0.7%
- EV / EBITDA
- n/aD&A or debt not tagged in SEC data
- Price / sales
- 5.06×
- Price / book
- 8.27×
- Market cap
- $7.0Bprice × diluted shares
- Enterprise value
- n/anot reported in its SEC filings
Growth
- Revenue, 12 months
- $1.4B
- Sales growth, 12 months
- +26.8%vs the 12 months before
- Sales growth, 3 yrs
- +27.9%/yrfrom FY2022
- Diluted EPS, 12 months
- $0.56
- EPS growth, last FY
- −50.9%
- Net income, 12 months
- $66M
- Net income growth
- −53%12 months vs before
Profitability
- Gross margin
- n/agross profit isn't reported (common for service and financial companies)
- Operating margin
- 5.2%
- Net margin
- 4.8%
- FCF margin
- 3.6%
- Return on equity
- 8%
- Return on invested capital
- n/aoperating income, debt, equity or cash not tagged
Balance sheet
- Cash & short-term inv.
- $323M
- Total debt
- n/anot reported in its SEC filings
- Net cash
- n/acash or debt not tagged in SEC data
- Debt / equity
- n/adebt or equity not tagged in SEC data
- Interest coverage
- n/ainterest expense not tagged in SEC data
Cash flow & returns
- Free cash flow, 12 months
- $49M
- FCF growth, 12 months
- +3%
- Dividend yield
- 0%
- Payout ratio
- n/anot reported in its SEC filings
- Buybacks, 12 months
- n/anot reported in its SEC filings
- Share count, 1 year
- +0.0%diluted shares vs a year ago
- Stock-based comp
- $18M
Trailing 12 months to Jul 12, 2026; balance sheet at Jul 12, 2026. From CAVA Group’s SEC filings. Sparklines show up to six fiscal years. n/a means we don’t hold that number, with the reason. How each is computed.
Valuation details
DCF $12.78 · MV $57.96
Assumes 15.0% growth for 5 years (revenue grew 27.9% a year FY22–FY25; capped at 15%), fading to 3%; 9.5% discount rate, 3% terminal growth. FCF base $0.41 a share (trailing 12 months to Jul 12, 2026), from the 10-Q filed Aug 12, 2026.
Setup & signals
No setup armed
No setup armed, so there’s no trigger or stop to track yet. Reversal signal rules only run on companies that pass our quality screen.
Momentum & 52-week range
RSI 59 · 5 days +9.8%
The business
FCF $-0.0B · Sales +31%
- Free cash flow, 12 months$-0.0B
- Free-cash-flow margin0%
- Gross margin38%
- Operating margin8%
- Return on invested capital9%
- Return on equity8%
- Sales growth (latest quarter vs year-ago quarter)+31%
- Net debt / EBITDA0.5×
Next report
Nov 4
- DateWed Nov 4, after the close
- Consensus EPS$0.12
- Year-ago EPS$0.12
- QuarterSep/2026
From Nasdaq’s earnings calendar. A report resets Market Value.
Information only, not investment advice. Fair value estimates and talking points are rule-based model output from public data and can be wrong; stop levels are reference points, not orders. How every number is computed.
CAVA is outside our quality screen
One text when a published rule fires on one of the 333 quality companies we track: the ticker, the price, the stop and a link to the numbers. Nothing else.