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 overvalued based on its current metrics, with a P/E ratio of 8, an EV to EBITDA of 4.48, and a Price to Book Value of 0.63. In comparison to peers, Potbelly Corp. has a much higher P/E ratio of 40.09, while Flanigan's Enterprises, Inc. shows an EV to EBITDA of 8.15, both suggesting that Good Times Restaurants, Inc. is trading at a lower valuation despite its recent grade change.
Additionally, the company's stock performance has been notably poor, with a year-to-date return of -44.79% compared to the S&P 500's gain of 13.30%, reinforcing the notion that the stock is overvalued in the current market context. Over the past year, the stock has declined by 49.65%, further highlighting the disconnect between its valuation and market performance.