Is Brinker International, Inc. overvalued or undervalued?

As of 31 October 2025, the valuation grade for Brinker International, Inc. has moved from very attractive to attractive, indicating a shift towards a more cautious outlook. The company appears to be overvalued based on its current metrics, particularly with a P/E ratio of 31, which is higher than the peer average of approximately 26.05 for similar companies. Additionally, the EV to EBITDA ratio stands at 18.07, and the PEG ratio is notably low at 0.29, suggesting that while growth expectations may be high, the current valuation does not justify this premium.
In comparison to its peers, Texas Roadhouse, Inc. has a P/E of 24.79 and EV to EBITDA of 14.80, indicating it is relatively more affordable. Other peers like Aramark and Wingstop, Inc. are also priced higher, with P/E ratios of 31.90 and 48.65, respectively. Despite Brinker International's strong ROE of 147.98% and ROCE of 60.56%, its recent stock performance has lagged behind the S&P 500, with a year-to-date return of -17.86% compared to the index's 16.30%. This underperformance reinforces the notion that the stock may be overvalued in the current market environment.