Is El Pollo Loco Holdings, Inc. overvalued or undervalued?

As of 11 August 2025, El Pollo Loco Holdings, Inc. has moved from a fair to a very expensive valuation grade. The company appears overvalued based on its current metrics, with a P/E ratio of 13, which is significantly lower than the peer average of 12.44, and an EV to EBITDA ratio of 7.44, compared to the peer average of 7.04. Additionally, the Price to Book Value stands at 1.25, indicating a premium over its book value relative to some peers.
In comparison to its peers, BJ's Restaurants, Inc. has a P/E of 26.98, while Carrols Restaurant Group, Inc. is at 15.07, highlighting that El Pollo Loco is priced lower than some competitors despite its very expensive classification. The company's stock has underperformed against the S&P 500 across multiple periods, with a year-to-date return of -12.22% compared to the S&P 500's 12.22%, reinforcing the notion that it is overvalued in the current market context.