Arcos Dorados Holdings Inc.
FAIR PRICE VALUATION
Updated daily
Model: DCF 50% · Relative 30% · Consensus 20%
MARKET PRICE
$8.89
FAIR PRICE
$13.43
MARGIN
$4.54
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FPI RATING
Consistent growth trajectory and attractive valuation, but elevated debt levels and weak profitability margins.
Analytical data, not an investment recommendation. Updated daily.
How we calculate this ↗MARGIN OF SAFETY
A 20% margin of safety below fair value — the conservative entry level for risk-aware investors.
SAFETY MARGIN
20%
Below fair value
ENTRY LEVEL
$10.74
Fair price × 0.80
DISTANCE
20.8%
Price to entry level
At the current price of $8.89, ARCO trades 20.8% below the conservative entry level of $10.74. The stock is currently priced below the 20% margin of safety threshold, indicating a potential value opportunity based on the model.
Margin of safety is a risk management concept, not an investment recommendation. The 20% threshold follows Benjamin Graham's value investing framework. Fair price and entry levels are model-based estimates updated daily. Learn more about Margin of Safety ↗
VALUATION HISTORY
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P/E RATIO HISTORY
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METHODOLOGY
How we calculate ARCO's fair price
Arcos Dorados Holdings Inc.'s fair price of $13.43 is derived from a blended model that combines DCF analysis (50%), relative valuation against Consumer Cyclical peers using metrics like P/E and EV/EBITDA (30%), and analyst consensus (20%). At the current market price of $8.89, ARCO trades 51.0% below its calculated fair value.
DCF MODEL · 50%
Discounted free cash flow analysis based on projected cash flows, discounted at a rate reflecting ARCO's risk profile.
RELATIVE · 30%
Comparing ARCO's valuation multiples against Consumer Cyclical peers to determine if the stock is over or undervalued relative to its industry.
ANALYST · 20%
Aggregated analyst price targets for ARCO, weighted by recency and analyst accuracy.
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Explore on BuliosFAQ
What is the fair price of ARCO?+
Based on our blended model combining DCF analysis (50%), relative valuation against Consumer Cyclical peers (30%), and analyst consensus (20%), the fair price for Arcos Dorados Holdings Inc. is $13.43. At the current market price of $8.89, ARCO trades 51.0% below its calculated fair value.
Is ARCO overvalued or undervalued?+
Arcos Dorados Holdings Inc. is currently undervalued based on our valuation model. The stock trades at $8.89, which is 51.0% below the fair price of $13.43. The P/E ratio of 7.4x is a key metric in the valuation.
What is the margin of safety for ARCO?+
With a 20% margin of safety applied to the fair price of $13.43, the conservative entry level for ARCO is $10.74. At the current market price of $8.89, the stock trades 20.8% below this entry level. Margin of safety is a risk management concept from Benjamin Graham's value investing framework, not an investment recommendation.
How often is ARCO's fair price updated?+
We update fair price calculations for ARCO daily after market close. The current fair price of $13.43 incorporates the latest market data and sector multiples.
What factors affect ARCO's fair price calculation?+
ARCO's fair price of $13.43 is derived from DCF analysis (50% weight), relative valuation against Consumer Cyclical peers (30% weight), and analyst consensus (20% weight). Key metrics include P/E of 7.4x, ROE of 41.8%, and dividend yield of 5.31%.
Is ARCO a good buy right now?+
At $8.89, ARCO trades 51.0% below our fair value estimate of $13.43. The stock is currently undervalued. ROE stands at 41.8% (exceptional). Fair Price Index provides valuation data — always do your own research before investing.
Does ARCO pay dividends?+
ARCO has a dividend yield of 5.31%.
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Fair Price Index is for informational purposes only and does not constitute investment advice. Fair value calculations are model-based estimates and may not reflect actual market conditions. Always conduct your own research before making investment decisions.