Is Bloomin' Brands, Inc. overvalued or undervalued?

As of 7 May 2025, the valuation grade for Bloomin' Brands, Inc. has moved from risky to very attractive, indicating a significant improvement in its financial standing. The company is currently undervalued, supported by a P/E ratio of 4, an EV to EBITDA of 4.44, and a remarkable dividend yield of 853.00%. These figures suggest that the stock is trading at a substantial discount compared to its earnings potential.
In comparison to its peers, Bloomin' Brands stands out with a much lower P/E ratio than Shake Shack, Inc., which has a P/E of 407.22 and is considered expensive, and Papa John's International, Inc., which has a P/E of 23.74 and is categorized as risky. Additionally, Bloomin' Brands' EV to EBIT ratio of 8.92 is favorable compared to the industry average, reinforcing its undervaluation. Despite recent underperformance against the S&P 500, particularly over the past year with a decline of 52.73%, the current valuation metrics suggest a strong potential for recovery and growth.