Papa John's International Inc
NASDAQ:PZZA
EV/EBIT
Enterprise Value to EBIT (EV/EBIT) ratio compares a company`s total enterprise value to its earnings before interest and taxes. It shows how much investors are paying for each dollar of the company`s earnings, including both equity and debt.
Enterprise Value to EBIT (EV/EBIT) ratio compares a company`s total enterprise value to its earnings before interest and taxes. It shows how much investors are paying for each dollar of the company`s earnings, including both equity and debt.
Valuation Scenarios
If EV/EBIT returns to its 3-Year Average (18.4), the stock would be worth $32.79 (11% downside from current price).
| Scenario | EV/EBIT Value | Implied Price | Upside/Downside |
|---|---|---|---|
| Current Multiple | 20.7 | $36.79 |
0%
|
| 3-Year Average | 18.4 | $32.79 |
-11%
|
| 5-Year Average | 19.9 | $35.45 |
-4%
|
| Industry Average | 18.1 | $32.14 |
-13%
|
| Country Average | 19.6 | $34.91 |
-5%
|
Forward EV/EBIT
Today’s price vs future ebit
| Today's Enterprise Value | EBIT | Forward EV/EBIT | ||
|---|---|---|---|---|
|
$1.7B
|
/ |
Dec 2025
$92.5m
|
= |
|
|
$1.7B
|
/ |
Dec 2025
$111.5m
|
= |
|
|
$1.7B
|
/ |
Dec 2026
$130.3m
|
= |
|
|
$1.7B
|
/ |
Dec 2027
$188.2m
|
= |
|
Forward EV/EBIT shows whether today’s EV/EBIT still looks high or low once future ebit are taken into account.
Peer Comparison
| Market Cap | EV/EBIT | P/E | ||||
|---|---|---|---|---|---|---|
| US |
|
Papa John's International Inc
NASDAQ:PZZA
|
1.2B USD | 20.7 | 40.9 | |
| US |
|
McDonald's Corp
NYSE:MCD
|
232.5B USD | 21.9 | 27.1 | |
| US |
|
Starbucks Corp
NASDAQ:SBUX
|
112.9B USD | 35.1 | 82.5 | |
| UK |
|
Compass Group PLC
LSE:CPG
|
38.5B GBP | 14.1 | 20.4 | |
| US |
|
Yum! Brands Inc
NYSE:YUM
|
44.4B USD | 20.9 | 28.5 | |
| US |
|
Chipotle Mexican Grill Inc
NYSE:CMG
|
42.4B USD | 21.1 | 27.6 | |
| CA |
|
Restaurant Brands International Inc
NYSE:QSR
|
33.1B USD | 18.2 | 42.6 | |
| US |
|
Darden Restaurants Inc
NYSE:DRI
|
23.3B USD | 18.7 | 20.8 | |
| IN |
|
Eternal Ltd
NSE:ETERNAL
|
2T INR | -304.5 | 847.7 | |
| CN |
|
Yum China Holdings Inc
NYSE:YUMC
|
18.7B USD | 13 | 20.1 |
Market Distribution
| Min | 0 |
| 30th Percentile | 13.6 |
| Median | 19.6 |
| 70th Percentile | 27.8 |
| Max | 1 826 183.2 |
Other Multiples
Papa John's International Inc
Glance View
Once upon a slice in the bustling landscape of American fast food, Papa John's International Inc. emerged as a beacon for those who believe in the power of quality ingredients. Founded in 1984 in Jeffersonville, Indiana, by John Schnatter, the company was born out of a belief that customers crave superior pizza, made with fresh dough and the finest toppings. Over the decades, Papa John's has expanded its footprint from a modest pizza delivery operation to a global chain with thousands of stores. Despite facing fierce competition and shifting consumer preferences, the brand has maintained its edge by adhering to its "Better Ingredients. Better Pizza." motto, a commitment that resonates deeply with customers seeking both taste and quality. Strategically, Papa John’s generates its revenue primarily through two channels: company-owned restaurants and franchised locations. The company's own stores directly sell pizzas and sides, while franchised stores contribute through royalties and franchise fees. This dual structure not only spreads its brand reach efficiently but also mitigates operational risks. Moreover, Papa John's has been successful in leveraging technology to streamline its operations and enhance customer experience through innovations like online ordering and reward programs. By focusing on efficient supply chain management and marketing strategies geared towards both existing and new markets, the company continues to secure its slice of the highly competitive pizza industry pie.
