Moments ago Shake Shack, aka SHAK, opened for trading, after pricing its IPO at $21 last night, 50% higher than the initial range of $14-16 (subsequently revised to $17-19). It has promptly soared nearly 140% after opening for trading, and was last seen at just over $49.

What does this mean from a valuation standpoint?

Well, the Company's Adjusted LTM EBITDA is $17 million according to its S-1 (the unadjusted EBITDA is well lower).

After selling 5 million share to the public, the company will have a total of 11.2 million Class A and 24.3 million Class B shares outstanding, or a total of 35.5 million.

Add a little over $60 million in net cash, and you get an Enterprise Value of $1.84 billion.

What does this mean on a valuation multiple basis? Well, at last check $17 million in EBITDA fits a little over 100 times in a market cap of $1.8 billion.

So we are happy to report that in this market, in which there clearly are no bubbles, Shake Shak has just opened for trading at a 108x EV/EBITDA.

* * *

So does SHAK make cell phones, cloud-based services (or as Silicon Valley would say, some variant of  Mo-Lo-So), Kindle readers, Direct to TV streamers, or something else that is expected to grow at a 20% annual pace in perpetuity?

No. They make...

Presenting: the burger bubble.