Is Good Times Restaurants, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Good Times Restaurants, Inc. moved from attractive to very expensive. The company is overvalued based on its current financial metrics. Key ratios include a P/E ratio of 8, an EV to EBITDA of 4.48, and a Price to Book Value of 0.63, which suggest that despite a low P/E, the overall valuation remains high relative to its financial performance.
In comparison with peers, Potbelly Corp. has a significantly higher P/E ratio of 40.09, while Flanigan's Enterprises, Inc. shows an EV to EBITDA of 8.15, indicating that Good Times Restaurants, Inc. is not only lagging in profitability but also priced higher relative to its earnings potential. The company's stock has underperformed against the S&P 500, with a year-to-date return of -44.79% compared to the index's 13.30%, reinforcing the notion that it is currently overvalued.