Is Cheesecake Factory, Inc. overvalued or undervalued?

As of 30 April 2025, the valuation grade for Cheesecake Factory, Inc. has moved from expensive to very expensive. The company is currently deemed overvalued. Key ratios include a P/E ratio of 32, an EV to EBITDA of 19.47, and a PEG ratio of 1.32, which suggest that the stock is priced significantly above its earnings growth potential compared to its peers.
In comparison to its peers, Shake Shack, Inc. has a P/E ratio of 407.22 and an EV to EBITDA of 32.94, indicating it is also expensive, while Papa John's International, Inc. presents a more attractive P/E of 23.74 and an EV to EBITDA of 12.46, highlighting a stark contrast in valuation metrics. Additionally, Cheesecake Factory's recent stock performance has outpaced the S&P 500, with a year-to-date return of 26.71% compared to the index's 2.44%, but this does not mitigate its current overvaluation status.