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 in the leisure services industry. Additionally, the EV to EBITDA ratio stands at 18.07, while peers like Texas Roadhouse, Inc. have a lower EV to EBITDA of 14.80, further supporting the overvaluation thesis.
Brinker International's PEG ratio of 0.29 suggests potential growth, but this is overshadowed by its high price-to-book value of 45.96, which is significantly above the industry norm. In comparison to its peers, such as Cheesecake Factory, Inc. with a P/E of 33.05 and Wingstop, Inc. with a P/E of 48.65, Brinker’s valuation metrics reflect a premium that may not be justified by its performance. Notably, the company has underperformed against the S&P 500 over the past year, with a return of -0.33% compared to the index's 19.89%, reinforcing the notion that it may be overvalued at its current price.