Is First Watch Restaurant Group, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for First Watch Restaurant Group, Inc. has moved from expensive to fair. Based on the current metrics, the company appears to be fairly valued. The P/E ratio stands at 54, while the EV to EBITDA ratio is 11.90, and the Price to Book Value is 1.53. In comparison to peers, Brinker International, Inc. shows a more attractive P/E of 26.05 and EV to EBITDA of 14.90, while Shake Shack, Inc. is classified as very expensive with a P/E of 194.06.
Although First Watch has shown strong short-term performance with a 1-week return of 18.44% compared to the S&P 500's 1.70%, it has underperformed in the longer term, with a year-to-date return of -3.71% against the S&P 500's 13.30%. This mixed performance suggests that while the company is currently fairly valued, its longer-term prospects may warrant closer scrutiny.