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. The company appears to be overvalued based on its current metrics. The P/E ratio stands at 31, significantly higher than the peer average of approximately 26.05, while the EV to EBITDA ratio is 18.07 compared to the peer average of 14.90. Additionally, the PEG ratio of 0.29 suggests that the stock may not be as undervalued as it seems relative to its growth prospects.
In comparison to its peers, Texas Roadhouse, Inc. has a P/E of 24.79 and an EV to EBITDA of 14.80, indicating a more favorable valuation. Other peers like Aramark are also considered very expensive with a P/E of 31.90. Notably, Brinker has underperformed against the S&P 500 in the year-to-date period with a return of -17.86% compared to the S&P 500's 16.30%, reinforcing the notion that the stock may be overvalued in the current market context.