Is RCI Hospitality Holdings, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for RCI Hospitality Holdings, Inc. has moved from attractive to very expensive, indicating a significant shift in its perceived value. The company is currently overvalued, as evidenced by its P/E ratio of 10, which is higher than the peer average of approximately 9.74 for similar companies like Dine Brands Global, Inc. and Jack in the Box, Inc. Additionally, the EV to EBITDA ratio stands at 8.72, which also exceeds the peer average of 8.48, further supporting the overvaluation assessment.
In comparison to its peers, RCI Hospitality's PEG ratio of 2.88 is notably high, suggesting that the stock may not be justified by its growth prospects when compared to Chuy's Holdings, Inc. with a PEG of 1.48. Furthermore, the company's recent stock performance has been poor, with a year-to-date return of -53.23%, significantly lagging behind the S&P 500's return of 13.30% during the same period. This stark contrast in performance reinforces the notion that RCI Hospitality Holdings, Inc. is currently overvalued.