Chipotle Mexican Grill Inc. (NYSE:CMG)

The valuation ratios exhibit varied trends over the observed period. Generally, the ratios demonstrate volatility, with fluctuations occurring across each quarter. A noticeable pattern emerges in the latter half of the period, suggesting a potential shift in market perception or company performance.

Price to Earnings (P/E)

The Price to Earnings ratio began at 61.35 and generally decreased through September 30, 2022, reaching a low of 44.26. It then increased to 58.48 by December 31, 2022, before peaking at 65.94 in March 2024. Subsequently, the ratio declined significantly, reaching 27.99 in September 2025, before a modest increase to 33.86 by the end of the period. This suggests periods of higher and lower investor confidence in earnings.

Price to Operating Profit (P/OP)

Similar to the P/E ratio, the Price to Operating Profit ratio showed a decreasing trend from 50.34 in March 2022 to 34.75 in September 2022. It experienced an increase through December 2022, reaching 46.13, followed by a peak of 52.39 in March 2024. A subsequent decline is observed, with the ratio falling to 22.27 in September 2025, and a slight recovery to 26.87 by December 2025. The correlation with the P/E ratio is apparent.

Price to Sales (P/S)

The Price to Sales ratio displayed an initial decrease from 5.36 to 4.86, followed by an increase to 7.28 by December 2022. It continued to rise, peaking at 8.38 in March 2024, before experiencing a substantial decrease to 3.65 in September 2025. A partial recovery to 4.36 was noted by the end of the period. This ratio demonstrates the highest degree of fluctuation compared to the others.

Price to Book Value (P/BV)

The Price to Book Value ratio generally increased from 19.67 in March 2022 to 25.43 in March 2024, with some intermediate fluctuations. A subsequent decline was observed, reaching a low of 13.35 in September 2025, followed by a recovery to 18.37 by December 2025. This ratio indicates changes in how the market values the company’s net assets.

The period from September 2024 to December 2025 shows a consistent downward trend in all ratios, suggesting a potential re-evaluation of the company’s valuation by the market. The subsequent modest increases in the final quarter indicate a possible stabilization, but further observation is needed to confirm this trend.

The price-to-earnings (P/E) ratio exhibited fluctuations over the observed period, spanning from March 31, 2022, to December 31, 2025. Initially, the ratio demonstrated a decreasing trend, followed by periods of relative stability and subsequent increases, culminating in a final period of decline and modest recovery.

Initial Decline (Mar 31, 2022 – Dec 31, 2022)

The P/E ratio began at 61.35 and generally decreased through the end of 2022, reaching 49.37. This decline occurred alongside increasing earnings per share (EPS), suggesting that earnings growth was not fully reflected in the share price during this period, or that price increases were moderated by other factors.

Fluctuation and Increase (Mar 31, 2023 – Dec 31, 2023)

From March 31, 2023, to December 31, 2023, the P/E ratio experienced volatility. It initially rose to 54.42, then decreased to 47.35, before increasing significantly to 58.48, and peaking at 65.94. This period coincided with continued growth in EPS, but also substantial share price movement. The peak in the P/E ratio suggests a period of heightened investor optimism or potentially overvaluation relative to earnings.

Recent Trends (Mar 31, 2024 – Dec 31, 2025)

The P/E ratio decreased from 62.24 on March 31, 2024, to 32.53 on September 30, 2025, indicating a substantial correction. While EPS continued to increase, the share price declined more rapidly, driving down the ratio. A slight recovery was observed in the final quarter, with the P/E ratio reaching 33.86. This recent decline could indicate investor concerns regarding future growth prospects or broader market conditions.

Overall, the P/E ratio demonstrates a dynamic relationship with both share price and EPS. The observed patterns suggest periods of investor optimism, correction, and potential undervaluation. The recent decline warrants further investigation to determine the underlying causes and potential implications for future performance.

The Price to Operating Profit (P/OP) ratio for the analyzed period demonstrates considerable fluctuation. Initially, the ratio exhibited a decreasing trend from March 2022 to December 2022, followed by a period of volatility and then a general decline through September 2025. The ratio’s movements appear to correlate with changes in both share price and operating profit per share, though not always proportionally.

Initial Decline (Mar 31, 2022 – Dec 31, 2022)

The P/OP ratio decreased from 50.34 to 38.25 over this period. This decline occurred despite an increase in operating profit per share, suggesting the share price did not increase at the same rate as profitability. The most significant decrease occurred between June and September 2022.

Volatility and Increase (Mar 31, 2023 – Dec 31, 2023)

The ratio experienced volatility, initially rising to 42.00 in March 2023, then decreasing to 36.84 in June 2023, before increasing again to 46.13 by December 2023. This period coincided with increases in both share price and operating profit per share, but the share price increase appeared to outpace the growth in operating profit.

Subsequent Decline (Mar 31, 2024 – Dec 31, 2025)

From March 2024 through December 2025, the P/OP ratio generally decreased, falling from 52.39 to 26.87. This decline was more pronounced in the latter half of the period, particularly between March and September 2025, where the ratio dropped significantly to 22.27. While operating profit per share continued to increase, the share price experienced a more substantial decrease, driving down the ratio. A slight recovery to 26.87 was observed by December 2025, but the ratio remained considerably lower than its levels in 2022 and 2023.

The highest P/OP ratio observed was 52.39 in March 2024, while the lowest was 22.27 in September 2025. The overall trend suggests a decreasing investor willingness to pay for each dollar of operating profit generated by the company over the analyzed timeframe, or a shift in market perception regarding future profitability.

Correlation with Share Price and Operating Profit

The P/OP ratio’s movements are influenced by both share price and operating profit per share. Increases in operating profit per share tend to exert upward pressure on the ratio, while increases in share price have a similar effect. Conversely, decreases in either component lead to a lower ratio. However, the magnitude of change in the share price appears to have a greater impact on the P/OP ratio than changes in operating profit per share during certain periods.

The Price to Sales (P/S) ratio for the observed period demonstrates considerable fluctuation. Initially, the ratio exhibited a decreasing trend from March 31, 2022, to September 30, 2022, followed by an increase through December 31, 2022. Subsequently, the ratio peaked in December 31, 2023, before declining significantly and stabilizing in the latter part of the observed timeframe.

Initial Decline (Mar 31, 2022 – Sep 30, 2022)

The P/S ratio decreased from 5.36 to 4.86 over this period. This suggests that while the share price experienced some volatility, sales per share increased at a faster rate, leading to a lower valuation relative to sales.

Subsequent Increase (Sep 30, 2022 – Dec 31, 2022)

The ratio increased from 4.86 to 5.14. This indicates that the share price grew at a faster pace than sales per share during this timeframe, resulting in a higher valuation relative to sales.

Peak and Decline (Dec 31, 2022 – Jun 30, 2023)

The P/S ratio rose sharply to 7.28 by December 31, 2023, before beginning a substantial decline. This peak coincided with a significant increase in share price, while sales per share continued to grow at a more moderate pace. The subsequent decline suggests a correction in valuation, potentially driven by a reassessment of future growth prospects or broader market conditions.

Stabilization (Jun 30, 2023 – Dec 31, 2025)

From June 30, 2023, through December 31, 2025, the P/S ratio experienced a marked decrease, falling to 4.36. While there were fluctuations, the ratio generally stabilized in the range of 3.65 to 4.36. This suggests a period of relative equilibrium between share price and sales performance. The initial sharp decline was followed by a period of consolidation, indicating a potential leveling off of investor expectations.

Throughout the period, the P/S ratio consistently remained above zero, indicating a positive sales figure. The most substantial change occurred between December 2023 and September 2025, where the ratio decreased by more than 50%, suggesting a significant shift in market perception of the company’s valuation relative to its sales.

The Price to Book Value (P/BV) ratio for the analyzed period demonstrates considerable fluctuation. Initially, the ratio exhibited a moderate decline from 19.67 to 17.58 between March 31, 2022, and September 30, 2022. Subsequently, it increased to 23.47 by December 31, 2022, before peaking at 25.43 on March 31, 2023. A subsequent decrease was observed through December 31, 2023, settling at 18.37 by December 31, 2025.

Overall Trend

The P/BV ratio generally trended upwards over the analyzed period, despite significant interim volatility. The ratio began at 19.67 and concluded at 18.37, indicating a relatively stable, though fluctuating, valuation relative to book value.

Peak and Trough Values

The highest P/BV ratio recorded was 25.43 on March 31, 2023, suggesting a period of heightened investor optimism or potentially overvaluation relative to the company’s net asset value. The lowest ratio was 13.35 on September 30, 2025, potentially indicating a period of investor pessimism or undervaluation.

Relationship to Share Price and BVPS

The P/BV ratio’s movements correlate with both the share price and the Book Value Per Share (BVPS). Increases in the share price, particularly between December 2022 and March 2023, contributed to higher P/BV ratios. Simultaneously, the BVPS generally increased throughout the period, but not always at a rate sufficient to offset share price increases, resulting in the observed P/BV fluctuations.

Recent Performance

From March 31, 2024, to December 31, 2025, the P/BV ratio experienced a notable decline from 18.75 to 18.37. This suggests a recent shift in investor sentiment or a relative slowdown in share price appreciation compared to the growth in book value per share.

In summary, the P/BV ratio demonstrates a dynamic relationship between market valuation and underlying net asset value. The observed fluctuations suggest sensitivity to market conditions and investor expectations.