Is Ark Restaurants Corp. overvalued or undervalued?

As of 18 December 2023, Ark Restaurants Corp. has moved from an expensive to a risky valuation grade. The company appears to be overvalued given its current metrics, particularly with a Price to Book Value of 0.95, an EV to EBITDA ratio of 6.15, and an EV to Sales ratio of 0.20. In comparison, Potbelly Corp. is classified as very expensive with a P/E ratio of 40.09, while Nathan's Famous, Inc. also shows a risky valuation with an EV to EBITDA of 27.95, highlighting the relative underperformance of Ark Restaurants.
The stock has significantly underperformed against the S&P 500, with a year-to-date return of -34.09% compared to the index's 12.22%. This stark contrast reinforces the notion that Ark Restaurants Corp. is not only overvalued but also struggling in the current market environment.