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 appears to be overvalued based on its current metrics, with a P/E ratio of 10, a Price to Book Value of 1.36, and an EV to EBITDA of 8.72. In comparison, peers such as Chuy's Holdings, Inc. have a P/E of 19.29 and Portillo's, Inc. at 14.11, highlighting that RCI is trading at a lower valuation despite its very expensive classification.
The stock has underperformed relative to the S&P 500, with a year-to-date return of -53.23% compared to the index's 13.30%, and a three-year return of -64.60% against 81.19% for the S&P 500. This stark contrast reinforces the notion that RCI Hospitality Holdings, Inc. is currently overvalued in the market.