Is Brinker International, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Brinker International, Inc. has moved from expensive to attractive. Based on the current metrics, the company appears to be undervalued. Key ratios include a P/E ratio of 31, an EV to EBITDA of 18.07, and a PEG ratio of 0.29, which suggests strong growth potential relative to its price.
In comparison to its peers, Brinker International's P/E ratio of 26.05 is lower than Texas Roadhouse, Inc. at 24.79 and significantly lower than Aramark at 31.90, indicating a more favorable valuation. Additionally, Brinker’s EV to EBITDA ratio is competitive against Texas Roadhouse's 14.80, reinforcing its attractiveness. Over the past year, Brinker has outperformed the S&P 500 with a return of 43.17% compared to the index's 14.08%, further supporting the notion that the stock is undervalued.