Is RCI Hospitality Holdings, Inc. overvalued or undervalued?

As of 17 October 2025, RCI Hospitality Holdings, Inc. has moved from an attractive to a very expensive valuation grade. The company appears overvalued based on its current metrics, including a P/E ratio of 10, a Price to Book Value of 1.36, and an EV to EBITDA of 8.72. In comparison, its peers such as Chuy's Holdings, Inc. have a significantly higher P/E ratio of 19.29, while Dine Brands Global, Inc. shows a P/E of 9.96, indicating that RCI's valuation is not justified relative to its competitors.
The company's high PEG ratio of 2.88 further suggests that growth expectations are not being met by its current earnings, reinforcing the notion of overvaluation. Additionally, while RCI Hospitality Holdings, Inc. has a strong dividend yield of 69.36%, this does not compensate for the high valuation metrics when compared to industry peers. Overall, the lack of return data makes it difficult to assess performance against the S&P 500, but the current valuation metrics indicate that the stock is likely overvalued.