Restaurant Brands International Limited Partnership (TSX:QSP.UN) shares have edged higher recently, climbing nearly 2% over the past month and gaining around 8% during the past 3 months. Investors seem to be weighing the company’s long-term track record and current valuation as they consider their next move.
See our latest analysis for Restaurant Brands International Limited Partnership.
Momentum has been quietly building for Restaurant Brands International Limited Partnership, with a 1-month share price return of 2% and an 8% gain over the past three months. This reflects renewed optimism. Over the longer term, total shareholder returns have added up to more than 50% in five years. This suggests patient investors have been rewarded for staying in the fold.
If you’re watching this trend and wondering what else might be gaining traction, now is a great moment to broaden your outlook and explore fast growing stocks with high insider ownership
But with shares showing solid gains and an intrinsic discount of just under 10%, the big question is whether Restaurant Brands International Limited Partnership is trading below its true value or if the market already anticipates further growth. Is there still a buying opportunity, or is the future already factored into today’s price?
Restaurant Brands International Limited Partnership’s shares trade at a price-to-earnings (P/E) ratio of 18.1x, slightly below both the peer average (18.9x) and the North American Hospitality industry average (19.5x), based on the last close price of CA$97.09.
The P/E ratio measures how much investors are willing to pay for each dollar of the company’s earnings. In the hospitality sector, it is useful for weighing profitability expectations against the competition.
At 18.1x, the market seems to be valuing QSP.UN’s earning power as a solid bet compared to peers. This could mean investors expect steadier performance or see it as a relatively safer choice within the sector, especially with a long-term earnings growth record.
Compared to the industry’s higher P/E average, QSP.UN stands out as a better value proposition. If the market moves to re-rate its multiple in line with the sector, there may be further upside in store.
See what the numbers say about this price — find out in our valuation breakdown.
Result: Price-to-Earnings of 18.1x (UNDERVALUED)
However, unpredictability in industry trends or company performance could limit upside. This reminds investors that even solid track records do not guarantee future returns.