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

As of 17 October 2025, the valuation grade for El Pollo Loco Holdings, Inc. moved from expensive to very expensive, indicating a significant shift in its perceived value. The company appears to be overvalued based on its current metrics. Key ratios include a P/E ratio of 13, an EV to EBITDA of 7.44, and a Price to Book Value of 1.25, which suggest that the stock is trading at a premium compared to its earnings and book value.
In comparison to its peers, El Pollo Loco's P/E ratio of 13 is lower than BJ's Restaurants, Inc. at 26.98 and Chuy's Holdings, Inc. at 19.29, but higher than Carrols Restaurant Group, Inc. at 15.07, which is rated as fair. The EV to EBITDA ratio of 7.44 is also more favorable than BJ's Restaurants' 6.81 but less favorable than Chuy's Holdings' 8.57. While specific return data is not available, the overall valuation metrics suggest that El Pollo Loco is not positioned favorably in the current market landscape.