Is RCI Hospitality Holdings, Inc. overvalued or undervalued?

As of 30 June 2025, RCI Hospitality Holdings, Inc. has moved from expensive to very expensive, indicating a significant shift in its valuation grade. The company appears to be overvalued based on its current valuation metrics, including a P/E ratio of 10, an EV to EBITDA of 8.72, and a PEG ratio of 2.88. In comparison, peers such as Chuy's Holdings, Inc. have a P/E of 19.29 and Portillo's, Inc. has a P/E of 14.11, suggesting that RCI's valuation is not justified relative to its industry counterparts.
Additionally, the stock has underperformed against the S&P 500 across multiple periods, with a year-to-date return of -50.98% compared to the S&P 500's 12.22%. This stark contrast reinforces the notion that RCI Hospitality Holdings, Inc. is currently overvalued in the market.