Is Rave Restaurant Group, Inc. overvalued or undervalued?

As of 14 March 2025, Rave Restaurant Group, Inc. has moved from a fair to an attractive valuation grade. The company appears to be undervalued based on its strong financial metrics, including a P/E ratio of 21, an EV to EBITDA of 12.59, and a remarkable ROCE of 65.58%. In comparison to its peers, Rave's P/E ratio of 19.01 is notably higher than Potbelly Corp.'s 9.45, indicating a more favorable valuation despite being in an attractive category.
Additionally, Rave's PEG ratio of 0.95 suggests that it is priced attractively relative to its growth prospects. The company's recent stock performance has outpaced the S&P 500 over the past year, with a return of 32.81% compared to the index's 10.26%. Overall, these factors support the conclusion that Rave Restaurant Group, Inc. is currently undervalued in the market.