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Money and the economyLesson 8 of 8

Part 1 of 3, 0 done

15 min

What a business is worth

What Chipotle owns, minus what it owes, is under three billion dollars on its balance sheet. Investors valued its shares at many times that. A bakery down the street might sell for a few years of its profit. Here's how anyone puts a price on a business.

Ticket 01 · The guess

How many years of profit?

In mid-2025, the Chipotle shares held by outside investors were worth $64Bsec.gov ·2025 on the stock market. Chipotle's profit for 2025 was $1.5Bsec.gov ·2025. About how many years of that profit is the price?

10 years
0 years100
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Sources and every number (1)

Sources

  • Chipotle Mexican Grill annual report (Form 10-K), fiscal 2025 · Chipotle Mexican Grill, Inc., filed with the U.S. Securities and Exchange Commission, 2025

Every number

  • $64Bsec.gov ·2025 · Market value of Chipotle's shares held by outsiders (non-affiliates) on the last trading day of June 2025, from the cover of its Form 10-K for 2025.
  • $1.5Bsec.gov ·2025 · Chipotle's net income for 2025.
  • 41.7 yearssec.gov ·2025 · Worked out: Chipotle's outsiders' market value divided by its 2025 net income. Rough: the market value counts only shares held by outsiders (not directors, officers or big holders), on a mid-year date, while the profit is the whole year's.
  1. Lessons›
  2. Money and the economy
  • ·Before this: Stocks and shares: owning a slice, and what an IPO is
Skip to the lesson

Money and the economyLesson 8 of 8

Part 1 of 3, 0 done

15 min

What a business is worth

What Chipotle owns, minus what it owes, is under three billion dollars on its balance sheet. Investors valued its shares at many times that. A bakery down the street might sell for a few years of its profit. Here's how anyone puts a price on a business.

Ticket 01 · The guess

How many years of profit?

In mid-2025, the Chipotle shares held by outside investors were worth $64Bsec.gov ·2025 on the stock market. Chipotle's profit for 2025 was $1.5Bsec.gov ·2025. About how many years of that profit is the price?

10 years
0 years100
Words to know

Spot something wrong?

Tell us what looks off. No name or email needed.

What kind of problem?

0 / 1000

We'll also send this page, the lesson, ticket 1, so we can find it. Nothing else. Privacy

·
Sources and every number (1)

Sources

  • Chipotle Mexican Grill annual report (Form 10-K), fiscal 2025 · Chipotle Mexican Grill, Inc., filed with the U.S. Securities and Exchange Commission, 2025

Every number

  • $64Bsec.gov ·2025 · Market value of Chipotle's shares held by outsiders (non-affiliates) on the last trading day of June 2025, from the cover of its Form 10-K for 2025.
  • $1.5Bsec.gov ·2025 · Chipotle's net income for 2025.
  • 41.7 yearssec.gov ·2025 · Worked out: Chipotle's outsiders' market value divided by its 2025 net income. Rough: the market value counts only shares held by outsiders (not directors, officers or big holders), on a mid-year date, while the profit is the whole year's.
  1. Lessons›
  2. Money and the economy
  • ·Before this: Stocks and shares: owning a slice, and what an IPO is