Intrinsiqq
Rave Restaurant Group Inc. logoRave Restaurant Group Inc.RAVE
$2.20-2.65%
Rave Restaurant Group Inc. logo

Rave Restaurant Group Inc.

RAVE

$2.20

-$0.06 (-2.65%)

⊜ Compare
ProfitabilityStrong marginsGrowthSteady growthCash FlowStrong conversionValuationAttractively priced
What stands out

Margins and capital returns are both well above average: 26.92% operating margin, ROIC at 15.30%. Consistent with durable pricing power, though that alone doesn't make it a buy.

What's changing

Revenue grew 7.0%, steady but not accelerating.

What deserves caution

Even for strong businesses, today's 11x P/E means the stock needs to keep delivering. There's no margin of safety if growth disappoints.

Valuation context

11.0x earnings, 8.9x FCF. The multiple is below average. Either the market is pricing in deterioration you should investigate, or there's genuine value here.

Price History

-19.1%

Valuation & Multiples

Based on TTM earnings · Diluted shares

Market Cap$31M
EPS$0.20
P/E11.00
P/FCF8.93
EV/EBITDA4.91
FCF Yield11.2%
Div. Yield—
Net Debt/FCF-3.8x
52-Week Range
$2.15$3.48

Profitability & Returns

Revenue (TTM)

$13M

▲ +7.0% YoY

Net Income (TTM)

$3M

▲ +6.5% YoY

Op. Margin

26.92%

ROIC

15.30%

▼ -1.1pp YoY

Cash Flow & Balance Sheet

FCF (TTM)

$4M

▲ +4.9% YoY

Op. Cash Flow (TTM)

$4M

▲ +4.6% YoY

Net Debt

-$13M

Net Cash Position

Cash & Equiv.

$14M

5Y CAGR: +8.5%

5Y CAGR: +22.4%

Continue Research

SourceComputed from the 10-Q filed 17 Sept 2026, covering the period ending 28 Jun 2026, as reported to the SEC. Data last refreshed 28 Sept 2026. How this is calculated.

Price from market data, last close as of 21 Oct 2026. Fiscal year ends Jun. Sector medians are approximate S&P 500 benchmarks and update periodically.

Is Rave Restaurant Group (RAVE) overvalued?

At a P/E of 11.0 and a price-to-free-cash-flow of 8.9, Rave Restaurant Group (RAVE) trades below a two-stage DCF intrinsic value of about $13.30 per share, so at $2.20 the stock looks undervalued (504.5% below estimated intrinsic value). A high multiple is not the same as overvalued: fast-growing, high-quality businesses can deserve a premium. See the general approach in how to tell if a stock is overvalued.

On quality, Rave Restaurant Group scores 85/100 on Intrinsiqq's quality scorecard (a high-quality business on these measures), weighing growth, margins, returns on capital, share count, and balance-sheet strength. All figures are computed from SEC filings; read the full methodology, or see how the market compares in our US profitability statistics. This is analysis, not investment advice.

Frequently asked

What is Rave Restaurant Group's fair value?+

Intrinsiqq's two-stage DCF estimates an intrinsic value of about $13.30 per share for RAVE, projecting its recent free cash flow forward with a growth rate that fades toward a long-run rate and discounting it back to today. Applying a 25% margin of safety gives a more conservative fair-value entry around $9.97. At today's $2.20, that puts the stock about 504.5% below estimated intrinsic value. The result is sensitive to the growth and discount-rate inputs, so it is best to run conservative, base and optimistic cases. You can adjust all of them yourself with the sliders on the DCF tab.

Is Rave Restaurant Group a high-quality business?+

Rave Restaurant Group scores 85 out of 100 on Intrinsiqq's quality score, a weighted blend of 8 metrics each scored 0 to 100, which makes it a high-quality business on these measures. Recent fundamentals include a 26.9% operating margin and a 15.3% return on invested capital. The score weighs revenue and free-cash-flow growth, operating margins, return on invested capital, share-count change, and balance-sheet strength, all computed from SEC filings, not opinion. Because valuation only means something relative to quality, the full metric-by-metric breakdown is on the quality scorecard.

Is Rave Restaurant Group a good stock to buy right now?+

That depends on valuation and quality together, not either alone. RAVE currently trades below its estimated intrinsic value and scores 85/100 on quality (high-quality). A cheap price is only a bargain if the business is durable, and a premium can be justified by genuine quality, so the two questions, "is it cheap?" and "is it good?", only make sense side by side. Read the valuation against the quality scorecard, run the DCF on your own assumptions, and decide for yourself. This is analysis from SEC filings, not investment advice.

Related stocks: Wholesale-Groceries & Related Products

Spot a number that looks wrong? Check it in RAVE's SEC filings or

Download this analysis as a PDF (Pro)

Data sourced from SEC EDGAR filings and third-party price providers. Scores, valuations, and metrics are algorithmic estimates. This is not investment advice. See our Terms and Methodology.

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Not financial advice. Analytical data for research only.

Intrinsiqq is a Netherlands-based company operating in Rotterdam, KvK 73238007.