Is Flanigan's Enterprises, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Flanigan's Enterprises, Inc. has moved from very attractive to expensive, indicating a shift towards overvaluation. The company appears to be overvalued based on its current metrics, with a P/E ratio of 23, a Price to Book Value of 2.18, and an EV to EBITDA of 9.61. In comparison to peers, Flanigan's has a lower P/E ratio than Potbelly Corp. at 40.09 and Nathan's Famous, Inc. at 41.50, but is still classified as expensive in its own right.
Despite the overvaluation, Flanigan's has shown strong recent performance, with a year-to-date return of 26.14%, significantly outperforming the S&P 500's return of 13.30% over the same period. However, the 3-year return of 22.31% compared to the S&P 500's 81.19% highlights a concerning trend that may warrant caution for potential investors.