Is Jack in the Box, Inc. overvalued or undervalued?

Sep 20 2025 06:19 PM IST
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As of February 17, 2016, Jack in the Box, Inc. is considered risky and overvalued due to its higher P/E ratio of 9 compared to the peer average of 10.02, a concerning negative price-to-book value of -1.67, and significantly poorer stock performance with a year-to-date return of -54.73% versus the S&P 500's 12.22%.
As of 17 February 2016, the valuation grade for Jack in the Box, Inc. has moved from attractive to risky, indicating a shift in the company's perceived value. The company appears to be overvalued, particularly given its P/E ratio of 9, which is higher than the peer average of 10.02, and a PEG ratio of 0.25, suggesting that the stock may not be priced appropriately relative to its growth potential. Additionally, the negative price-to-book value of -1.67 raises concerns about the company's financial health.

In comparison to its peer, Bloomin' Brands, Inc., which has a P/E of 4.10 and an EV/EBITDA of 4.53, Jack in the Box's ratios reflect a less favorable position in the market. The company's recent stock performance has been significantly lagging behind the S&P 500, with a year-to-date return of -54.73% compared to the S&P 500's 12.22%, further reinforcing the notion that the stock may be overvalued.
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