Is Good Times Restaurants, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Good Times Restaurants, Inc. has moved from attractive to very expensive, indicating a significant shift in its perceived value. The company appears to be overvalued based on its current metrics, particularly with a P/E ratio of 8, which is substantially lower than its peers like Potbelly Corp. at 40.09 and Flanigan's Enterprises, Inc. at 17.62. Additionally, the EV to EBITDA ratio stands at 4.48, while the industry average is notably higher, further supporting the notion of overvaluation.
With a Price to Book Value of 0.63 and a PEG Ratio of 2.13, Good Times Restaurants, Inc. struggles to justify its current valuation against its peers. The company has underperformed significantly compared to the S&P 500, with a year-to-date return of -44.79% versus the index's 13.30%. This stark contrast in performance reinforces the conclusion that the stock is overvalued in the current market environment.