Sumary of Denny’s Stock Shows Every Sign Of Being Significantly Overvalued:
- The stock of Denny’s (NAS:DENN, 30-year Financials) is estimated to be significantly overvalued, according to GuruFocus Value calculation..
- It is calculated based on the historical multiples that the stock has traded at, the past business growth and analyst estimates of future business performance..
- If the price of a stock is significantly above the GF Value Line, it is overvalued and its future return is likely to be poor..
- At its current price of $18.15 per share and the market cap of $1.2 billion, Denny’s stock appears to be significantly overvalued..
- Because Denny’s is significantly overvalued, the long-term return of its stock is likely to be much lower than its future business growth..
- Investing in profitable companies carries less risk, especially in companies that have demonstrated consistent profitability over the long term..
- Typically, a company with high profit margins offers better performance potential than a company with low profit margins..
- GuruFocus research has found that growth is closely correlated with the long term stock performance of a company..
- The 3-year average annual revenue growth of Denny’s is -14.2%, which ranks worse than 88% of the companies in Restaurants industry…