Latest Ratios: P/E Ratio 108.1x · EV/EBITDA 41.3x · ROE 8.6%. (2021–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 |
|---|---|---|---|---|---|---|
| Market Cap | $6.9B | $7.1B | $13.5B | $2.7B | — | — |
| Enterprise Value | $7.1B | $7.3B | $13.5B | $2.7B | — | — |
| P/E Ratio → | 108.14 | 111.39 | 103.97 | 204.67 | — | — |
| P/S Ratio | 4.79 | 6.02 | 14.04 | 3.74 | — | — |
| P/B Ratio | 8.95 | 9.11 | 19.45 | 4.78 | — | — |
| P/FCF | 172.44 | 271.56 | 255.73 | — | — | — |
| P/OCF | 37.27 | 38.41 | 84.00 | 28.08 | — | — |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 |
|---|---|---|---|---|---|---|
| EV / Revenue | — | 6.17 | 14.05 | 3.75 | — | — |
| EV / EBITDA | 41.34 | 47.59 | 130.85 | 52.36 | — | — |
| EV / EBIT | 89.14 | 102.86 | 222.14 | 86.91 | — | — |
| EV / FCF | — | 278.57 | 255.96 | — | — | — |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 |
|---|---|---|---|---|---|---|
| Gross Margin | 18.4% | 18.4% | 25.1% | 24.7% | 17.4% | 16.4% |
| Operating Margin | 6.7% | 6.7% | 4.5% | 0.6% | -10.6% | -10.5% |
| Net Profit Margin | 5.4% | 5.4% | 13.5% | 1.8% | -10.5% | -7.5% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 |
|---|---|---|---|---|---|---|
| ROE | 8.6% | 8.6% | 20.6% | 21.7% | — | — |
| ROA | 5.0% | 5.0% | 12.1% | 1.7% | -12.5% | -10.3% |
| ROIC | 7.1% | 7.1% | 5.0% | 1.8% | — | — |
| ROCE | 7.1% | 7.1% | 4.5% | 0.7% | -14.8% | -17.0% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 |
|---|---|---|---|---|---|---|
| Debt / Equity | 0.60 | 0.60 | 0.54 | 0.59 | — | — |
| Debt / EBITDA | 3.05 | 3.05 | 3.66 | 6.45 | — | — |
| Net Debt / Equity | — | 0.24 | 0.02 | 0.01 | — | — |
| Net Debt / EBITDA | 1.20 | 1.20 | 0.12 | 0.07 | — | — |
| Debt / FCF | — | 7.01 | 0.24 | — | — | — |
| Interest Coverage | — | — | — | — | -314.40 | -6.75 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 |
|---|---|---|---|---|---|---|
| Current Ratio | 2.65 | 2.65 | 2.97 | 3.25 | 0.69 | 2.98 |
| Quick Ratio | 2.59 | 2.59 | 2.91 | 3.20 | 0.63 | 2.91 |
| Cash Ratio | 2.42 | 2.42 | 2.76 | 3.05 | 0.46 | 2.71 |
| Asset Turnover | — | 0.87 | 0.82 | 0.74 | 0.97 | 1.38 |
| Inventory Turnover | 106.78 | 106.78 | 94.99 | 97.28 | 90.71 | 114.72 |
| Days Sales Outstanding | — | 5.88 | 4.92 | 5.95 | 5.00 | 4.42 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 |
|---|---|---|---|---|---|---|
| Dividend Yield | — | — | — | — | — | — |
| Payout Ratio | — | — | — | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 |
|---|---|---|---|---|---|---|
| Earnings Yield | 0.9% | 0.9% | 1.0% | 0.5% | — | — |
| FCF Yield | 0.6% | 0.4% | 0.4% | — | — | — |
| Buyback Yield | 0.0% | 0.0% | 0.0% | 0.0% | — | — |
| Total Shareholder Yield | 0.0% | 0.0% | 0.0% | 0.0% | — | — |
| Shares Outstanding | — | $118M | $118M | $63M | $1M | $732000 |
Includes 30+ ratios · 5 years · Updated daily
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Quick answers to the most common questions about buying CAVA stock.
CAVA Group, Inc.'s current P/E ratio is 108.1x. The historical average is 107.7x. This places it at the 50th percentile of its historical range.
CAVA Group, Inc.'s current EV/EBITDA is 41.3x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 50.0x.
CAVA Group, Inc.'s return on equity (ROE) is 8.6%. The historical average is 17.0%.
Based on historical data, CAVA Group, Inc. is trading at a P/E of 108.1x. This is at the 50th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
CAVA Group, Inc. has 18.4% gross margin and 6.7% operating margin.
CAVA Group, Inc.'s Debt/EBITDA ratio is 3.0x, indicating high leverage. A ratio between 2-4x is manageable but warrants monitoring.
Key Metrics
Top Statement Risk
Premium valuation with thin margins
Metrics are mathematically derived from official filings.
Premium Multiples Price in Sustained Expansion
Based on the supplied valuation data, CAVA trades at a trailing P/E of 109.5 and EV/EBITDA of 46.2, multiples that imply investors are underwriting years of unit growth well beyond current earnings power.
Compared with Chipotle at a 30.2 P/E and 22.6 EV/EBITDA, and Texas Roadhouse at 30.1 and 19.5, CAVA carries a premium of roughly three to four times on earnings metrics. The forward P/E of 109.4 is nearly identical to the trailing figure, suggesting consensus expects little near-term earnings acceleration. This pricing appears to reflect a growth-stock valuation that depends on new-unit productivity sustaining over a long horizon.
Margins Compressed as Overhead Absorbs Gross Profit
As reported in the quarterly ratio data, operating margin fell from 9.2% in 2025Q2 to 4.2% in 2026Q3, while net margin declined from 6.5% to 3.7% over the same span, indicating growing cost pressure.
The gross margin swing from 14.9% to 25.9% across recent quarters points to meaningful sensitivity in food, labor, and packaging costs relative to pricing. Operating margin compression suggests SG&A and pre-opening costs are growing faster than gross profit during the expansion phase. Until the gap between gross and operating margin narrows, the earnings base remains thin relative to the valuation.
Returns Thin and Below Peer Benchmarks
According to the reported ratio series, ROIC has ranged between 0.7% and 2.6% over ten quarters, and ROE of 1.6% in 2026Q3 sits far below Chipotle's 55.7% and Texas Roadhouse's 27.2%.
Low returns on invested capital indicate that the company's large asset base, dominated by restaurant property, is not yet generating economic profit at a level that justifies its market value. The modest ROE partly reflects a growing equity base rather than deteriorating operations, but the trend in ROIC remains the more informative signal. Investors should monitor whether new-unit cohorts lift returns toward peer levels.
Low Leverage Offers Insulation From Rate Shocks
Based on the reported balance sheet ratios, debt-to-equity has held between 0.54 and 0.63 across ten quarters, with interest coverage of 8.3 to 20.0 times on EBITDA, suggesting debt service is comfortable.
A debt-to-EBITDA ratio near 14.8 in the latest quarter reflects weak trailing EBITDA rather than heavy borrowing, and this trend warrants monitoring. The company's leverage profile appears manageable at present, though lease obligations associated with its restaurant footprint are not fully captured in these simple debt ratios.
Cash Conversion Masks Thin Free Cash Flow
As reported in the ratio data, free cash flow margin swung from 9.6% in 2024Q3 to -2.2% in 2026Q3, and P/FCF of 263.6 indicates investors pay a steep price for each dollar of current free cash flow.
The most commonly misapplied metric for a restaurant growth story is price-to-earnings, which can be distorted by pre-opening expenses and non-operating items. Analysts should instead weigh restaurant-level operating profit and unit-level cash-on-cash returns, which better isolate the economics of each new location. This framing suggests current cash generation may understate or overstate durable earning power depending on the timing of expansion spending.