Darden Restaurants

Darden Restaurants P/S

The (Price-Sales Ratio) is an important metric for stock valuation. It is calculated by dividing the current share price by the revenue per share. The P/S indicates how many years a company needs to generate the revenue per share as profit. A low P/S suggests that a stock may be undervalued, while a high P/S could indicate overvaluation. However, it is important to always consider the P/S in the context of the industry and the company. of Darden Restaurants (DRI) as of Nov 10, 2026 is 1.78. In the previous year, (Price-Sales Ratio) is an important metric for stock valuation. It is calculated by dividing the current share price by the revenue per share. The P/S indicates how many years a company needs to generate the revenue per share as profit. A low P/S suggests that a stock may be undervalued, while a high P/S could indicate overvaluation. However, it is important to always consider the P/S in the context of the industry and the company. was 1.95 — a change of -8.59% (lower).

P/S

1.78

YoY

-8.59%

Last updated:

As of Nov 10, 2026, Darden Restaurants's P/S ratio stood at 1.78, a -8.59% change from the 1.95 P/S ratio recorded in the previous year.

The Darden Restaurants P/S history

  • 3 Years

  • 10 Years

  • 25 Years

  • Max

P/S
Date
P/S
Jan 1, 2019
2.77 USD
Jan 1, 2020
3.01 USD
Jan 1, 2021
3.27 USD
Jan 1, 2022
2.44 USD
Jan 1, 2023
2.24 USD
Jan 1, 2024
2.07 USD
Jan 1, 2025
1.95 USD
Jan 1, 2026
1.78 USD
The Darden Restaurants P/S history
YEARP/SYoY
1.78-8.59%
1.95-5.69%
2.07-7.92%
2.24-8.18%
2.44-25.27%
3.27+8.49%
3.01+9.01%
2.77-5.06%
2.91-11.26%
3.28-3.30%
3.39-2.44%
3.48-7.07%
3.74+243.54%
1.09+9.00%
1.00+38.89%
0.72-13.25%
0.83+33.87%
0.62+16.98%
0.53-18.46%
0.65—

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Darden Restaurants Valuation

Details

Historical Valuation Multiples

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Price-to-Earnings Ratio (P/E)

The P/E ratio divides Darden Restaurants's share price by its earnings per share. It tells you how many years of current earnings you are "paying for" when you buy the stock. A P/E of 20 means you pay $20 for every $1 of annual earnings. The S&P 500 historically trades at an average P/E of roughly 15–17. A P/E significantly above that may signal high growth expectations; one below may indicate undervaluation — or declining business quality.

Price-to-Sales Ratio (P/S)

The P/S ratio divides market capitalization by total revenue. Unlike the P/E ratio, it works even for companies that are not yet profitable, making it essential for evaluating high-growth firms. A P/S below 1.0 may indicate undervaluation, while ratios above 10 are typically reserved for fast-growing tech or SaaS companies with high expected future margins.

Price-to-EBIT Ratio

This ratio relates Darden Restaurants's market price to its operating earnings, excluding the effects of debt structure and tax jurisdiction. It is particularly useful for comparing companies across different countries or with different levels of leverage, because it focuses purely on operational profitability. Lower values suggest cheaper operational earnings.

How to Use This Chart

This chart plots Darden Restaurants's valuation multiples over time. Compare the current P/E, P/S, and P/EBIT to their own historical averages — if the current ratio is well below the multi-year average, the stock may be relatively cheap compared to its own track record. Combine this with industry comparisons: a P/E that looks high in absolute terms may be justified if Darden Restaurants grows earnings faster than its peers.

Darden Restaurants Stock analysis

What does Darden Restaurants do? Darden Restaurants Inc. is a company from the USA that operates in the gastronomy sector. The company was founded in 1968 by William Darden and is headquartered in Orlando, Florida. Darden is one of the largest gastronomy companies in the world with over 1,500 restaurants in 33 countries. The business model of Darden Restaurants is based on the development and operation of restaurant brands that operate in various segments of the gastronomy industry. The company operates a variety of restaurants, including Olive Garden, LongHorn Steakhouse, Cheddar's Scratch Kitchen, Yard House, The Capital Grille, Seasons 52, and Bahama Breeze. The different divisions of Darden Restaurants offer a wide range of culinary offerings, from Italian cuisine to seafood and steaks. The company places a great emphasis on quality and sustainability in selecting its suppliers and ingredients. Darden is also committed to environmental protection and implements environmentally friendly practices in its restaurants. In recent years, Darden Restaurants Inc. has undergone many changes. In 2014, the company sold Red Lobster, one of its most well-known restaurant brands, to a private investment consortium. Since then, the company has focused on the development of its existing brands and expansion into new markets. Darden Restaurants Inc. has also invested in technology and digitization. The company has developed a mobile app that allows customers to place and pay for their orders. The app also offers special deals and rewards for loyal customers. In summary, Darden Restaurants Inc. is a gastronomy company with a wide range of restaurant brands that serve different segments of the gastronomy industry. The company places a great emphasis on quality and sustainability in selecting its suppliers and ingredients and is committed to environmental protection and environmentally friendly practices in its restaurants. Darden Restaurants Inc. has undergone changes in recent years and has invested in the development of new technologies to enhance the customer experience. Darden Restaurants is one of the most popular companies on Eulerpool.

P/S Details

Decoding Darden Restaurants's P/S Ratio

Darden Restaurants's Price to Sales (P/S) Ratio is a crucial financial metric that measures the company's market valuation relative to its total sales revenue. It's calculated by dividing the company's market capitalization by its total sales over a specific period. A lower P/S ratio can indicate that the company is undervalued, while a higher ratio may suggest overvaluation.

Year-to-Year Comparison

Comparing Darden Restaurants's P/S ratio yearly provides insights into how the market perceives the company’s value relative to its sales. An increasing ratio over time can indicate growing investor confidence, while a decreasing trend might reflect concerns about the company’s revenue generation capabilities or market conditions.

Impact on Investments

The P/S ratio is instrumental for investors evaluating Darden Restaurants's stock. It offers insights into the company’s efficiency in generating sales and its market valuation. Investors use this ratio to compare similar companies within the same industry, aiding in selecting stocks that offer the best value for investment.

Interpreting P/S Ratio Fluctuations

Variations in Darden Restaurants’s P/S ratio can result from changes in the stock price, sales revenue, or both. Understanding these fluctuations is crucial for investors to evaluate the company’s current valuation and future growth potential, aligning their investment strategies accordingly.

Frequently Asked Questions about Darden Restaurants stock

(Price-Sales Ratio) is an important metric for stock valuation. It is calculated by dividing the current share price by the revenue per share. The P/S indicates how many years a company needs to generate the revenue per share as profit. A low P/S suggests that a stock may be undervalued, while a high P/S could indicate overvaluation. However, it is important to always consider the P/S in the context of the industry and the company. of Darden Restaurants is 1.78 in 2026.

(Price-Sales Ratio) is an important metric for stock valuation. It is calculated by dividing the current share price by the revenue per share. The P/S indicates how many years a company needs to generate the revenue per share as profit. A low P/S suggests that a stock may be undervalued, while a high P/S could indicate overvaluation. However, it is important to always consider the P/S in the context of the industry and the company. of Darden Restaurants changed from 1.95 to 1.78, representing a -8.59% change. The value is lower than the previous year.

On Eulerpool you can find the complete historical development of (Price-Sales Ratio) is an important metric for stock valuation. It is calculated by dividing the current share price by the revenue per share. The P/S indicates how many years a company needs to generate the revenue per share as profit. A low P/S suggests that a stock may be undervalued, while a high P/S could indicate overvaluation. However, it is important to always consider the P/S in the context of the industry and the company. Darden Restaurants since 2006 – with annual values, charts, and detailed analysis.

The Price-to-Sales Ratio (P/S Ratio) is a financial metric that represents the ratio between the current price of a stock and the sales per share of the company. It is commonly used to assess the valuation of a stock compared to other stocks in the same industry or compared to the overall average of the stock market.

P/S Formula:
P/S = Price of a stock / Sales of a stock
If you can't find the Sales per Share (SPS) right away, which is the equivalent term for Revenue per Share in English, you can also calculate this value by dividing the company's total sales by the number of issued shares.

SPS Formula:
Total sales of the company / Number of issued shares
The Sales per Share or Revenue per Share can usually be easily found on most financial websites.

The P/S ratio is often used to assess the valuation of a stock compared to other stocks in the same industry or the overall stock market average. It can provide insights into how well the company is performing in terms of revenue per share compared to its competitors. A low P/S ratio may indicate that the company is generating relatively high revenue per share compared to other companies in the industry, which can be positive. On the other hand, a high P/S ratio may indicate that the company is generating relatively low revenue per share compared to its competitors, which can be negative.

To evaluate (Price-Sales Ratio) is an important metric for stock valuation. It is calculated by dividing the current share price by the revenue per share. The P/S indicates how many years a company needs to generate the revenue per share as profit. A low P/S suggests that a stock may be undervalued, while a high P/S could indicate overvaluation. However, it is important to always consider the P/S in the context of the industry and the company.'s, it is essential to compare it with peers in the same industry and sector. On Eulerpool, you can find direct industry comparisons for (Price-Sales Ratio) is an important metric for stock valuation. It is calculated by dividing the current share price by the revenue per share. The P/S indicates how many years a company needs to generate the revenue per share as profit. A low P/S suggests that a stock may be undervalued, while a high P/S could indicate overvaluation. However, it is important to always consider the P/S in the context of the industry and the company..

A 'good' varies by industry and company stage. On Eulerpool, you can compare (Price-Sales Ratio) is an important metric for stock valuation. It is calculated by dividing the current share price by the revenue per share. The P/S indicates how many years a company needs to generate the revenue per share as profit. A low P/S suggests that a stock may be undervalued, while a high P/S could indicate overvaluation. However, it is important to always consider the P/S in the context of the industry and the company.'s Darden Restaurants with sector peers and the industry average to assess whether it is attractive.

The P/S ratio when valuing a stock.

The price-to-sales ratio (P/S ratio) is an important tool of technical analysis that assists investors in evaluating stocks. It refers to the earnings per share of a company and its price movements. This indicator can be used to determine a stock's fair value, relative to the company's earnings.

History of the Price-to-Sales Ratio

The price-to-sales ratio is a relatively new indicator. It was first used in the 1980s by John Price when he developed the Price-to-Sales Index (PSI). Price wanted to find a way to value stocks taking into account their earnings. He noticed that many stock prices were not in line with their earnings situation. The PSI has since become an important analytical tool and is often referred to as the P/S ratio.

Calculation of the price-to-sales ratio

The price-to-sales ratio is easy to calculate. It is determined by dividing the current stock price by the company's earnings per share. P/S ratio = Stock price / Earnings per share. For example, if a company's stock price is $10 and the earnings per share is $2, then the P/S ratio is 5.

Application of the Price-to-Sales Ratio

The Price-to-Sales ratio is a useful tool for determining a fairly valued stock price. A low P/S ratio may indicate that a stock price is undervalued, which could be a good entry opportunity. However, a high Price-to-Sales ratio may indicate that a stock price is overvalued and investors should exercise caution.

An example: A company has a stock price of 20 USD and an earnings per share of 2 USD. The P/E ratio is 10. This could indicate that the stock price is overvalued and investors should be cautious before buying.

Investors and the price-to-sales ratio

Investors use the price-to-sales ratio to determine whether a company's stock price is fairly valued or not. They can compare the P/S ratio to see how the stock price relates to the company's earnings. Investors can also observe the P/S ratio over a longer period of time to see if the stock price changes in relation to the company's earnings.

Advantages and Disadvantages of the Price-to-Sales Ratio

The greatest advantage of the price-to-sales ratio is that it is a simple and understandable tool to determine the fair value of a stock price. It can also help investors identify stocks that are undervalued. One disadvantage is that the P/S ratio does not provide information about the company's profits. Therefore, investors should also consider other financial ratios before investing.

In today's time, the price-to-sales ratio is an important tool for investors to evaluate stocks and identify potential investment opportunities. It can help find a fairly valued stock price and identify stocks that are undervalued. However, investors should also consider other financial indicators before making an investment decision.

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Valuation — Darden Restaurants

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