Toast, Inc. TOST
Composite 63/100; the shares have moved about 46% annualised. Names that move more contribute more risk for the same amount invested, and our composite reflects how strong the evidence for this one is right now.
Valuation ranks 33/100 — a moderate mark against it.
Growth ranks 94/100 — a strong point in its favour. Balance-sheet strength ranks 87/100 — a strong point in its favour. Quality ranks 58/100 — a slight point in its favour.
Valuation ranks 33/100 — a moderate mark against it.
What the company does Toast, Inc. (TOST) provides a cloud-based digital platform for restaurant operations, including POS, online ordering, payroll, inventory, and AI-driven analytics. Its integrated hardware, software, and payments suite targets multi-unit and independent restaurants across the U.S. and international markets.
Key financials Toast reports strong profitability metrics: ROE 22.5%, ROA 8.1%, ROCE 20.5%, and net margin 6.4%. Revenue grew 21.9% YoY, with EPS up 123.0%. Liquidity is solid (current ratio 2.44), and leverage is minimal (Debt/Equity 0.01), supporting financial flexibility.
Stock health Momentum is mixed: +14.78% over 3 months but -32.34% over 12 months, with RSI at 70.00 indicating overbought conditions. Quality (64.2) and Growth (87.3) scores are strong, though Valuation (35.4) and Momentum (37.1) trail peers.
Price vs fair value Toast trades at a PREMIUM of 29.20% to our fair-value estimate of $23.26 and a discount of 5.73% to the 12-month target of $34.73. - Simplistic valuation metrics (P/E 43.44, EV/EBITDA 36.01) cited as "pricey" (Simply Wall St.). - AI and enterprise expansion highlighted as long-term growth drivers (Zacks). - Profitability improvements noted alongside slowing growth (Zacks). - Bullish sentiment persists despite valuation concerns (Zacks).
Looking forward Forward P/E of 21.19 and PEG of 0.20 suggest potential value if growth accelerates. Expansion into AI and retail verticals may justify premium pricing, but execution risks remain tied to restaurant sector dynamics.
This is not investment advice. Sideravia provides automated, data-driven analysis for information and education only. Nothing on this page is a personal recommendation or an invitation to buy or sell any security, and it does not consider your objectives or financial situation. Assessments are generated by rules applied uniformly to every covered stock — how our scores work.
Data as of 2026-09-05, compiled from third-party sources; errors and delays are possible and figures are not warranted. Investing puts your capital at risk; past performance does not predict future results. We publish our full track record, including the calls that lost, and our conflicts of interest.