Is Biglari Holdings, Inc. overvalued or undervalued?

As of 11 August 2025, the valuation grade for Biglari Holdings, Inc. has moved from fair to expensive, indicating a shift towards overvaluation. The company appears overvalued, particularly given its Price to Book Value of 1.50 and an EV to EBITDA ratio of 12.41, which is relatively high compared to its peers. Additionally, the company's ROE stands at -10.86%, suggesting inefficiency in generating profit from equity.
In comparison to its peers, First Watch Restaurant Group, Inc. has a P/E ratio of 106.57, while Sweetgreen, Inc. shows a risky P/E of -10.71. This highlights that Biglari's valuation metrics are not only elevated but also lack profitability, which is concerning. Despite a strong performance year-to-date with a return of 21.83% compared to the S&P 500's 12.22%, the long-term returns of 212.88% over five years fall short of the S&P 500's 96.61%, reinforcing the notion that the stock may be overvalued.