Is Cava Group, Inc. overvalued or undervalued?

As of 7 July 2025, Cava Group, Inc. has moved from a fair to a very expensive valuation grade. The company is currently overvalued, as indicated by its high P/E ratio of 65, a Price to Book Value of 12.70, and an EV to EBITDA of 67.18. In comparison, Texas Roadhouse, Inc. has a P/E of 24.79 and an EV to EBITDA of 14.80, while Aramark shows a P/E of 31.90 and an EV to EBITDA of 13.75, highlighting significant discrepancies in valuation metrics within the industry.
The stock has underperformed relative to the S&P 500, with a year-to-date return of -43.65% compared to the S&P 500's 12.22%, and a one-year return of -48.87% against the S&P 500's 17.14%. This poor performance further supports the conclusion that Cava Group, Inc. is overvalued in the current market environment.