Is Brinker International, Inc. overvalued or undervalued?

As of 12 September 2025, Brinker International, Inc. has moved from a fair to attractive valuation grade. The company appears to be undervalued, supported by a P/E ratio of 31, a PEG ratio of 0.29, and an impressive ROE of 147.98%. In comparison to its peers, Brinker has a lower P/E ratio than Texas Roadhouse, Inc. at 24.79 and Aramark at 31.90, indicating a more favorable valuation relative to its industry.
Despite recent challenges reflected in its short-term stock performance, with a 1-week return of -12.63% compared to the S&P 500's 1.05%, Brinker has shown strong long-term growth, achieving a 3-year return of 390.01% versus the S&P 500's 70.41%. This suggests that while the stock may be facing short-term volatility, its long-term potential remains robust, reinforcing the view that it is currently undervalued.