Is Rave Restaurant Group, Inc. overvalued or undervalued?

As of 28 November 2025, Rave Restaurant Group, Inc. has moved from an attractive to a fair valuation grade. The company appears to be fairly valued based on its current metrics. 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 very expensive P/E of 40.09 and higher than Red Robin Gourmet Burgers, Inc.'s risky valuation with a P/E of -6.66. Additionally, Rave's EV to EBITDA ratio of 12.59 is more favorable than that of Flanigan's Enterprises, Inc., which has an EV to EBITDA of 8.15. Over the past year, Rave's stock has returned 8.19%, which is less than the S&P 500's return of 14.18%, suggesting that while the company is fairly valued, it has underperformed the broader market recently.