Is Papa John's International, Inc. overvalued or undervalued?

As of 31 October 2017, the valuation grade for Papa John's International, Inc. moved from fair to risky, indicating a shift in perception regarding its investment potential. The company appears to be overvalued, as evidenced by its P/E ratio of 24, which is higher than the peer average of 25.06, and an EV to EBITDA ratio of 12.61, which also exceeds the industry benchmark. Additionally, the PEG ratio stands at 1.50, suggesting that the stock may not be justified given its growth prospects.
In comparison to its peers, Texas Roadhouse, Inc. has a P/E of 24.79, while Wingstop, Inc. is rated as risky with a significantly higher P/E of 48.65. The recent stock performance further reinforces this valuation narrative, as Papa John's has underperformed the S&P 500 across multiple periods, including a 1-year return of -12.42% compared to the S&P 500's 17.14%. Overall, these factors suggest that Papa John's is currently overvalued in the market.