Is Rave Restaurant Group, Inc. overvalued or undervalued?

As of 11 August 2025, the valuation grade for Rave Restaurant Group, Inc. has moved from attractive to fair. Based on the current metrics, the company appears to be fairly valued. The P/E ratio stands at 21, while the EV to EBITDA ratio is 12.59, and the PEG ratio is 0.95, indicating a reasonable valuation relative to its growth prospects.
In comparison to its peers, Rave Restaurant Group has a P/E ratio of 26.46, which is lower than Potbelly Corp.'s P/E of 40.09, suggesting that Rave is more attractively priced within the context of its industry. Additionally, Red Robin Gourmet Burgers, Inc. has a risky valuation with a negative P/E, further highlighting Rave's relative stability. Over the past year, Rave Restaurant Group has outperformed the S&P 500 with a return of 97.74% compared to the index's 17.14%, reinforcing its strong performance in the market.