Arcos Dorados Holdings Inc. (ARCO) P/E Ratio History
Historical price-to-earnings valuation from 2011 to 2025
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ARCO Valuation Context
How does the current P/E compare to historical and market benchmarks?
P/E Ratio Analysis
As of May 6, 2026, Arcos Dorados Holdings Inc. (ARCO) trades at a price-to-earnings ratio of 9.0x, with a stock price of $9.04 and trailing twelve-month earnings per share of $1.01.
The current P/E is 41% below its 5-year average of 15.3x. Over the past five years, ARCO's P/E has ranged from a low of 5.8x to a high of 46.5x, placing the current valuation at the 20th percentile of its historical range.
Compared to the Consumer Cyclical sector median P/E of 19.6x, ARCO trades at a 54% discount to its sector peers. The sector includes 301 companies with P/E ratios ranging from 0.1x to 199.0x.
Relative to the broader market, ARCO trades at a notable discount to the S&P 500 median P/E of 25.2x. Investors should consider the company's growth prospects, competitive position, and earnings quality when evaluating whether the current valuation is justified.
For a comprehensive intrinsic value estimate using discounted cash flow analysis, see our ARCO DCF Valuation Calculator →
Note: P/E ratio is just one valuation metric. It does not account for balance sheet strength, cash flow quality, or growth sustainability. Always conduct comprehensive due diligence before making investment decisions.
ARCO P/E vs Peers
P/E ratio compared to closely matched public peers
| Company | Market Cap | P/E Ratio | PEG Ratio | EPS Growth (1Y) |
|---|---|---|---|---|
| $27B | 32.8 | 4.11 | -26% | |
| $43B | 28.1 | 2.06 | +7% | |
| $322M | 15.2 | - | +17% | |
| $202B | 24.9 | 3.26 | -1% | |
| $1B | 7.0Lowest | 0.67Best | -2% | |
| $4B | 88.6 | - | +354%Best | |
| $121B | 65.3 | 4.19 | -51% |
Peers sorted by market capitalization. P/E below peers may indicate undervaluation or lower growth expectations. Consider PEG ratio for growth-adjusted comparison.
ARCO Historical P/E Data (2011–2025)
Quarterly P/E ratios calculated from closing price and TTM EPS
| Quarter | Date | Price | TTM EPS | P/E Ratio | vs Avg |
|---|---|---|---|---|---|
| FY2025 Q4 | Wed Dec 31 2025 00:00:00 GM | $7.34 | $1.01 | 7.3x | -68% |
| FY2025 Q3 | $6.75 | $1.17 | 5.8x | -75% | |
| FY2025 Q2 | Mon Jun 30 2025 00:00:00 GM | $7.89 | $0.63 | 12.6x | -45% |
| FY2025 Q1 | Mon Mar 31 2025 00:00:00 GM | $8.06 | $0.65 | 12.5x | -46% |
| FY2024 Q4 | $7.28 | $0.72 | 10.1x | -56% | |
| FY2024 Q3 | Mon Sep 30 2024 00:00:00 GM | $8.72 | $0.70 | 12.5x | -46% |
| FY2024 Q2 | Sun Jun 30 2024 00:00:00 GM | $9.00 | $1.13 | 8.0x | -65% |
| FY2024 Q1 | Sun Mar 31 2024 00:00:00 GM | $11.12 | $1.13 | 9.8x | -57% |
| FY2023 Q4 | Sun Dec 31 2023 00:00:00 GM | $12.69 | $1.17 | 10.8x | -53% |
| FY2023 Q3 | Sat Sep 30 2023 00:00:00 GM | $9.46 | $1.17 | 8.1x | -65% |
| FY2023 Q2 | Fri Jun 30 2023 00:00:00 GM | $10.25 | $0.79 | 13.0x | -44% |
| FY2023 Q1 | Fri Mar 31 2023 00:00:00 GM | $7.71 | $0.73 | 10.6x | -54% |
Average P/E for displayed period: 23.0x
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Start ComparisonARCO — Frequently Asked Questions
Quick answers to the most common questions about buying ARCO stock.
Is ARCO stock overvalued or undervalued?
ARCO trades at 9.0x P/E, below its 5-year average of 15.3x. At the 20th percentile of historical range, the stock is priced at a discount to its own history.
How does ARCO's valuation compare to peers?
Arcos Dorados Holdings Inc. P/E of 9.0x compares to sector median of 19.6x. The discount suggests lower growth expectations or higher risk.
What is ARCO's PEG ratio?
ARCO PEG ratio is N/A. Above 2.0 indicates premium valuation relative to growth rate. Historical P/E data spans 2011-2025.