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

As of 17 October 2025, Flanigan's Enterprises, Inc. has moved from a very attractive valuation grade to expensive. The company appears to be overvalued based on its current metrics. The P/E ratio stands at 23, which is significantly higher than the peer average of 17.62, while the EV to EBITDA ratio of 9.61 also exceeds the peer average of 8.15. Additionally, the PEG ratio of 1.82 suggests that the stock may not be growing at a pace that justifies its current price.
In comparison to its peers, Potbelly Corp. has a P/E of 40.09 and Nathan's Famous, Inc. has a P/E of 41.50, indicating that Flanigan's is relatively more attractive in terms of valuation despite being classified as expensive. Over the past year, Flanigan's has returned 21.89%, outperforming the S&P 500's return of 14.08%, which may suggest some investor confidence despite the overvaluation.