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Toast Inc (TOST)

Fair Value
TechnologySoftware - InfrastructureUnited States

Fundamental

85

Price

$28.99

Market Cap

$17.56B

Part 1 · What the company is worth

Overview

Toast, Inc. operates a cloud-based digital technology platform for the restaurant industry in the United States, Ireland, India, and internationally. It offers a platform of software-as-a-service for restaurant operations and point of sale, such as Toast POS; Toast IQ, a conversational artificial intelligence; vendor management; multi-location management; kitchen display system; online ordering and delivery. It offers payroll and team management; inventory and supply chain tools; xtraCHEF by toast, a set of back-office tools for restaurants, including accounts payable automation, inventory management, ingredient price tracking, and recipe costing; financial technology solutions, including integrated payment processing, and restaurant-grade hardware. The company was formerly known as Opti Systems, Inc. and changed its name to Toast, Inc. in May 2012. Toast, Inc. was incorporated in 2011 and is headquartered in Boston, Massachusetts.

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Direct competitors

Who this company fights with for the same customers

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No competitor list for this company yet.

Balance Sheet & Liquidity

Revenue

$6.80B

Trailing 12 months (through 6/30/2026)

Net Income

$486M

Trailing 12 months (through 6/30/2026)

Free Cash Flow

$608M

Total Equity

$2.12B

Total Liabilities

$1.02B

Current Ratio

2.40

Interest Coverage

8.29

Debt/EBITDA

0.00

Earnings Per Share

Revenue & Net Income

Free Cash Flow

Income Breakdown

Historical statement

Margins over time

Debt over time

How heavy the debt is

Growth grid

Growth — Revenue

Fair Value Estimation

General caseFairly Valued

Fair Value

$30.26

Current Price

$28.99

Margin of Safety

+4.2%

Fair Value Range

$19.67 - $40.86

Spread across the valuation methods used, not a statistically calibrated confidence interval.

Estimation Methods

Analyst price target:$38.92
Discounted cash flow (DCF):Not enough data to compute it
Earnings multiple (P/E):$17.32
Graham growth formula:$12.86
Earnings power value (EPV):$4.05
Justified P/B:$4.90
Dividend discount (Gordon):Not enough data to compute it
P/FFO, funds from operations:Not enough data to compute it
Mid-cycle earnings:Not enough data to compute it
Revenue multiple:$58.86
Analyst Consensus:Buy (26B / 12H / 0S)
Last Earnings Surprise:+24.88%

Valuation Metrics

P/E Ratio

36.24

ROE

16.1%

P/B Ratio

-

P/FCF

0.00

Gross Margin

26.7%

ROIC

16.4%

Profitability Radar

Value Creation (Economic Moat)

ROIC

16.4%

WACC

14.2%

ROIC − WACC

+2.2 pp

ROIC exceeds the cost of capital — the company is creating value for shareholders.

Fundamental Analysis Criteria

Passed (19)

  • EPS shows upward trend
  • ROIC 16.4%
  • Debt/Equity ratio
  • Operating Margin 6.3%
  • Positive Free Cash Flow
  • CapEx intensity
  • Current Ratio
  • Interest Coverage
  • Debt/EBITDA
  • Return on Tangible Assets
  • Low reliance on intangibles
  • ROE 23.8%
  • Revenue Growth 5Y 49.5%
  • Analyst Consensus 68% Buy
  • Earnings Surprise avg 23.7%
  • Earnings Quality (OCF/NI) 1.31
  • Share Dilution -3.6%
  • Net Margin Trend 7.1% vs 4.1%
  • Piotroski F-Score 8/9

Failed (3)

  • Price CAGR -1.54%
  • Gross Margin 26.7%
  • DCF valuation (Unknown)

Unavailable (5)

  • P/FCF 0.00
  • P/B Ratio NaN
  • Dividend Payout NaN%
  • Price below Graham Number
  • PEG Ratio (need PE > 0 and growth > 0)

Piotroski F-Score

8/9

Strong financial health

score
criteria

Earnings Quality

1.31

High quality: earnings backed by cash

Share Dilution

-3.6%

Buying back shares. Shareholder friendly

Institutional Holdings

Governance

Executive Team

NameTitleAge
Mr. Aman NarangCo-Founder, CEO & Director42
Mr. Stephen FredettePresident, Co-Founder & Director41
Ms. Elena GomezCFO & President55
Mr. Brian R. Elworthy J.D.General Counsel & Corporate Secretary44
Mr. Jonathan VassilChief Revenue Officer48
Mr. Peter SauerbornChief Operating Officer58
Ms. Rossana NiolaChief Accounting Officer45
Ms. Mona BreedSenior VP & Chief Information Officer-
Ms. Kelly EstenCMO & COO of Enterprise-
Mr. Joe StarzecSenior Vice President of Sales-

Audit Risk

1

Board Risk

4

Compensation Risk

8

Shareholder Rights Risk

10

Part 2 · The price and when to enter

This part won't tell you whether the company is worth owning: it helps you choose when to buy it, once the fundamentals have convinced you. Inside: technical analysis, potential, historical drawdowns, gamma exposure.

Documents

  • Annual Report (10-K)

    A yearly overview of the business, its financial results, and the risks it faces.

    Filed on 2026-02-18

    View document
  • Quarterly Report (10-Q)

    A snapshot of financial performance for the most recent three-month period.

    Filed on 2026-08-05

    View document
  • Current Report (8-K)

    An announcement of a major event, such as a leadership change or big news.

    Filed on 2026-10-01

    View document

via SEC EDGAR

Income History

via SEC EDGAR

Latest News

Recent headlines for TOST, sourced from Markets Gazette.

  • 2/25/2026POSITIVE
    ValueAct Just Doubled Its Stake in This Beaten-Up SaaS Name. Should Investors Be Buying the Stock?

    ValueAct, a prominent investment firm, has significantly bolstered its position in Toast Inc., a software-as-a-service (SaaS) provider, by more than doubling its stake. This move comes as Toast's stock has been described as 'beaten-up,' suggesting ValueAct sees considerable upside potential in the company, which specializes in restaurant management technology. Such a substantial increase in investment from a sophisticated player like ValueAct often signals a strong belief in the target company's long-term value and recovery prospects. Investors might interpret this as a vote of confidence, potentially indicating that the stock is currently undervalued and poised for a rebound, especially given the strategic nature of ValueAct's investments.

via Markets Gazette