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Stocks SHAK DCF valuation

DCF valuation

What is Shake Shack Inc. worth?

With the base-case assumptions below, a discounted cash flow model on Shake Shack Inc.'s reported free cash flow gives $46.04 per share. The share price was $55.55 on September 25, 2026, 21% above that value.

Inputs from the filings

Free cash flow, fiscal 2025
$56.5M
Average free cash flow, last 5 years
-$6.2M
Cash
$308M
balance sheet of July 1, 2026
Debt
$248.3M
balance sheet of July 1, 2026
Diluted shares, fiscal 2025
41,847,000
Revenue growth per year, last 5 years
22.6%

Three sets of assumptions

CaseGrowth yrs 1-5Growth yrs 6-10After year 10Discount rateValue per shareValue vs price
Bear10.0%6.0%2.0%10.0%$28.53-49%
Base15.0%9.0%2.5%9.0%$46.04-17%
Bull20.0%11.5%3.0%8.0%$78.64+42%

Sensitivity: base case value per share

Discount rate down the side, growth after year 10 across the top. Everything else as in the base case.

1.5%2.0%2.5%3.0%3.5%
7.0%$59.29$63.43$68.48$74.79$82.91
8.0%$49.34$52.02$55.18$58.99$63.63
9.0%$42.09$43.93$46.04$48.51$51.42
10.0%$36.60$37.90$39.38$41.07$43.02
11.0%$32.30$33.26$34.32$35.53$36.89

Where the presets come from

Base: years 1 to 5 grow at Shake Shack Inc.'s revenue growth rate over the last 5 fiscal years (22.6% a year), held between -5% and 15%. Years 6 to 10 grow halfway between that and the long-run rate of 2.5%. Future cash is discounted at 9% a year.

Bear: 5 points less growth, 2% long-run growth, 10% discount rate. Bull: 5 points more growth (at most 25%), 3% long-run growth, 8% discount rate.

Value per share = (present value of 10 years of free cash flow + present value of everything after + cash - debt) / diluted shares.

This is a model run on assumptions, not a recommendation or a price target. Small changes in the discount rate or growth move the result a lot, as the table above shows. Change them yourself in the calculator.

Adjust the assumptions

Move the sliders for growth, long-run growth and discount rate, or switch to average free cash flow, and see the value per share change.

Adjust the assumptions

Shake Shack Inc. company page