Aramark

ARMK ·Consumer Cyclical, Restaurants, United States
Valuation › AI Valuation

AI Valuation

AI-generated fair value estimate for this company.

AI Fair Value $11.01
Market Price $55.55
Overvalued By 404.5%

Method: 10-year unlevered FCF DCF: $432.81M TTM FCF base; 5% growth years 1-5 (post-spinoff market share gains, contract wins), 3% years 6-10; 8.5% discount rate; 3% terminal growth; -$5,947.61M net debt ($520.39M cash vs $6,468M debt); 262.95M shares.

Reasoning: Aramark is a low-margin, capital-intensive food/facilities services business carrying substantial debt; a standard FCF DCF with realistic mid-single-digit growth values the business well below its current rich trailing P/E (39x), suggesting the market is pricing in more sustained margin expansion than this conservative model assumes.