Rave Restaurant Group Inc (RAVE) fair value: what the stock is really worth
As of Nov 6, 2026: fair value (intrinsic value) of Rave Restaurant Group Inc stock $3.12, price $2.12, upside +47.2%, quality 75 out of 100. Rating: undervalued. Calculated from audited financials with 22 of our 26 valuation models and 37 quality factors, updated daily.
69 individual criteria per stock, every one traceableSee the method →
Price vs Fair Value
White line = price, green steps = our fair value per fiscal year. As of Nov 8, 2026.
How to read this chart
60‑month range $0.8410 – $3.64 · fair‑value band $2.24 – $4.42 · the $2.12 price screens below the $3.12 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). As of Nov 8, 2026.
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Rave Restaurant Group, Inc., through its subsidiaries, engages in the operation and franchising of pizza buffet, delivery and carry-out, express restaurants, and ghost kitchens under the Pizza Inn and Pie Five trademarks in the United States and internationally.
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It operates through Pizza Inn Franchising, Pie Five Franchising and Other segments.
The company's buffet restaurants offer dine-in, carryout, and catering services, as well as delivery services; delivery/carry-out units provide delivery and carryout services; and express units serve customers through various non-traditional points of sale.
It also operates Pizza Inn Express restaurants that serves customers through a non-traditional, licensed, pizza-only model called Pizza Inn Express; and Pizza Inn Ghost Kitchen units serves through online third-party delivery companies.
In addition, the company operates and franchises fast casual restaurants under the Pie Five Pizza Company or Pie Five trademarks; and licenses pizza kiosk under the Pizza Inc trademark.
The company was formerly known as Pizza Inn Holdings, Inc. and changed its name to Rave Restaurant Group, Inc. in January 2015. Rave Restaurant Group, Inc. was founded in 1958 and is based in The Colony, Texas.
Stock analysis
Rave Restaurant Group Inc (RAVE) currently trades at $2.12, while our model-based Fair Value estimate is $3.12, implying the stock looks roughly 32% undervalued today.
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Valuation
Bull case: the Multiples group reads highest at a median of $3.49 per share, and 12 of the 22 models we run sit above the $2.12 price.
Bear case: the Asset-Based group reads lowest at $0.9500, and 10 of the 22 models stay below the price. Data coverage for this calculation is medium.
Scenario range: $2.24 (bear) to $4.42 (bull), the price of $2.12 sits below it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 75/100 (high quality), in the Consumer Cyclical sector.
Healthy Growth: Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Rave Restaurant Group Inc reported revenue of $12.9M in FY2026 versus $10.7M in FY2022, a compound +4.8%/yr. Reported net income was $2.9M in FY2026, compounding −22.6%/yr from FY2022.
Key figures
Market cap $30.3M Micro · P/E ratio 10.6 · P/S ratio 2.35 · EPS (TTM) $0.2000 · Net margin 22.3% · Return on equity 18.3% · Return on assets (EBIT) 16.9% (5-year average) · Operating margin 29.8%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 79 out of 100 (low confidence).
What moves the price
The share trades about 39% below its 52-week high and 1% above its 52-week low, currently below its 200-day average.
For context, the median of 10 Consumer Cyclical peers we cover trades at −30% fair-value upside, at 47%, RAVE screens cheaper than that median.
Fair Value models
Bear$2.24Fair Value $3.12Bull$4.42
Price $2.12 · Upside +47.2%
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above starts from their evidence-weighted blend, not from a single model. In cyclical trough or peak years, after dilution or a stock split it is adjusted afterwards, so it can sit above or below the models. Based on fiscal year 2026 figures (about 4 months old). Earnings retained since then ($0.0723 per share) are deliberately not added.Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.Coverage ⓘCoverage = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
In the last 6 months, no officer or director bought or sold shares on the open market.
Plus one other filing such as a grant, option exercise or tax withholding. It is not a market purchase or sale.
Sales are often planned (taxes, diversification, 10b5-1 plans). Purchases with their own money are seen as the stronger sign. For information only: not part of the quality score or Fair Value.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.87/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Revenue growth 1 year
+7.2%
Revenue growth 3 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+2.8%
Revenue growth 5 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+8.5%
Start year 2021 (pandemic). Over 10 years: −14.4% a year
Revenue growth 33 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
−4.2%
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What shareholders gained per year (last 5 years) ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate. Basis: adjusted.
+16.6%
Earnings growth per share plus dividend.
Earnings per share, growth per year+16.6%
Dividend (yield on the price)0.0%
Profit margin 2021 to 2026 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.12% → 27%
⚠ Revenue per share shrinking 15.2%/yr over ~10Y (margin trend unclear) ⓘStructural-decline marker: revenue PER SHARE has fallen over the last decade (robust median trend, not a single year). Backtested across 2005 to 2017, such businesses trailed the market by about 2.5 percentage points per year. Display only: it does not change the fair value or the quality score.
Growth Forecast
Little optimism in the price
The price assumes less growth than the company has delivered so far.
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
−15.3%
The company could shrink this much every year for the next five years and today's price would still be justified.
What forecasts expect
n/a
No analyst forecast available.
After inflation (USA: IMF forecast 2.4% a year to 2030, 3.1% from 2016 to 2025) that is about −17.3% a year for the price.
News mood ⓘNews mood, the average tone of recent news (37 articles), rated against how stocks are usually covered. 🚀 Hype = unusually upbeat · 🙂 Positive = above average · 😐 Neutral = typical · 🙁 Negative = below average · 😨 Very negative = unusually downbeat. It reflects the tone of coverage, not our valuation.Hype
Recent news coverage is unusually upbeat, far more positive than stocks are typically covered.
Compare Rave Restaurant Group Inc with another stock
Price, fair value, quality and upside side by side.
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Peer GroupⓘHow this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.Restaurants · 200 stocks
Beats the industry median on 11/14 measures
Overall it ranks above its industry peers.
Valuation
Quality Score75 · Top 25%
Fair Value upside+47.2% · Above median
Profitability
Return on equity (12 months)18.3% · Top 25%
Return on assets14.7% · Top 25%
Net margin (12 months)22.3% · Top 25%
Operating margin (12 months)29.8% · Top 25%
Growth and dividend
Revenue growth (quarter YoY)8.8% · Above median
Balance sheet
Debt / equity0.13× · Above median
Valuation Multiplesvs Restaurants median · lower = cheaper
P/E (12 months)10.6× · Cheapest 25%
P/B1.75× · Cheaper than median
P/S (12 months)2.35× · Priciest 25%
Price / free cash flow (fiscal year)9.1× · Cheaper than median
For bloggers, editors and developers: paste this into your site or blog (a “Custom HTML” block in WordPress), it shows the current fair value and links back here. Free, plain HTML, and welcome. Full data streams (CSV/JSON) at /developers.
Cite: Fair Value Calculator (2026). "Rave Restaurant Group Inc Fair Value". https://www.fairvalue-calculator.com/stock/RAVE
Frequently asked questions
Is Rave Restaurant Group Inc (RAVE) overvalued or undervalued?
As of Nov 8, 2026, our model estimates a fair value of $3.12 versus a price of $2.12, about +47% upside (undervalued).
What is the fair value of RAVE?
Our model-based fair value for Rave Restaurant Group Inc is $3.12 (as of Nov 8, 2026), built from audited fundamentals. The current price: $2.12.
What is the quality score of RAVE?
Rave Restaurant Group Inc has a Quality Score of 75/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for Rave Restaurant Group Inc (RAVE)?
Our model-based price target is the fair value of $3.12 (as of Nov 8, 2026) from 22 valuation models. Cautious scenario $2.24, optimistic scenario $4.42. It is a calculation from audited fundamentals, not an analyst target.
What is the Rave Restaurant Group Inc stock forecast for 2026?
Our models put fair value at $3.12, about +47% upside versus a price of $2.12 (undervalued). Cautious scenario $2.24, optimistic scenario $4.42. The calculation is refreshed regularly with new filings.
What is the revenue of Rave Restaurant Group Inc (RAVE)?
Rave Restaurant Group Inc reported trailing-twelve-month revenue of about $12.9M (latest available figure, as of Nov 8, 2026).
What growth is priced into Rave Restaurant Group Inc (RAVE)?
For today's price to be fair in a discounted-cash-flow model, Rave Restaurant Group Inc would have to grow free cash flow by -15.3 % per year for five years (discount rate 8.7 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +8.5 % per year. As of Nov 8, 2026.
What discount rate (WACC) does the fair value of RAVE use?
Our models discount Rave Restaurant Group Inc at 8.7 %: a base by market capitalisation (nano), damped by beta 0.56, country premium for USA. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For Rave Restaurant Group Inc that is -15.3 % per year for five years, then slowing evenly to 2 % by year ten, using the same discount rate (8.7 %) and the same formula as our fair value.
How much growth has Rave Restaurant Group Inc (RAVE) delivered so far?
Over the past 5 years revenue at Rave Restaurant Group Inc grew +8.5 % a year. The price currently implies free-cash-flow growth of -15.3 % per year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of Rave Restaurant Group Inc (RAVE) growing?
The median revenue growth in the sector is +4.7 % a year. That is the yardstick for the growth priced into Rave Restaurant Group Inc (-15.3 % per year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of Rave Restaurant Group Inc (RAVE)?
The free-cash-flow yield on the price is 11.01 %: that much free cash flow Rave Restaurant Group Inc produces per unit of market value. When it exceeds the discount rate of our models (8.7 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of Rave Restaurant Group Inc (RAVE)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Rave Restaurant Group Inc it is $3.12 per share (as of Nov 8, 2026), against a price of $2.12. It is the blended result of 22 valuation models in 7 families (DCF Models, Earnings-Based, Multiples, Asset-Based, Growth DCF, Economic Profit, Growth Earnings).
Is Rave Restaurant Group Inc stock overvalued or undervalued in 2026?
As of Nov 8, 2026, RAVE trades below its calculated fair value: price $2.12, fair value $3.12, a gap of about +47% (undervalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of RAVE?
No. The price is what the market pays today ($2.12); the fair value is what the company's own numbers justify ($3.12). For Rave Restaurant Group Inc the two are $1.00 per share apart. That gap is exactly why we show both numbers side by side.
How much is Rave Restaurant Group Inc worth?
The market values Rave Restaurant Group Inc at about $30.3M (market capitalisation, as of Nov 8, 2026). Per share that is $2.12; our models calculate a fair value of $3.12 per share.
What do the bullish and bearish scenarios say about RAVE?
Our models span a range for Rave Restaurant Group Inc: cautious scenario $2.24, base $3.12, optimistic $4.42 per share (as of Nov 8, 2026, price $2.12). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of RAVE?
Rave Restaurant Group Inc trades at a price-to-earnings ratio of 10.6 (as of Nov 8, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of $3.12 is built from several models across several years. Median P/E at fiscal year-end, 7 fiscal years (2018 to 2026), reported earnings, FY2018 ex one-offs: 14.8. Other multiples: PEG 5.0, P/B 1.8, P/S 2.3, EV/EBITDA 8.6.
What is the PEG ratio of RAVE?
The PEG ratio of Rave Restaurant Group Inc is 4.99 (P/E divided by earnings growth, as of Nov 8, 2026). That is above 1, so the growth is already paid for in the price.
How solid is the balance sheet of Rave Restaurant Group Inc (RAVE)?
Balance-sheet figures for Rave Restaurant Group Inc (as of Nov 8, 2026): return on equity 18.3%, debt of 0.13 per unit of equity. They feed the Quality Score of 75/100, which measures business quality independently of the share price.
How far is RAVE from its 52-week high?
Rave Restaurant Group Inc trades at $2.12, about 39% below its 52-week high of $3.48 and 1% above the low of $2.09 (as of Nov 6, 2026). Distance from the high says nothing about value: that is what the fair value of $3.12 is for.
Which stocks are comparable to Rave Restaurant Group Inc?
From the same area (Consumer Cyclical) we also value McDonald's Corporation, Starbucks Corporation, Yum! Brands, Inc, Chipotle Mexican Grill, Inc, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is Rave Restaurant Group Inc stock attractive at the current price?
The data as of Nov 8, 2026: price $2.12, calculated fair value $3.12 (+47%), Quality Score 75/100, from 22 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of RAVE calculated?
We run Rave Restaurant Group Inc through 22 models from 7 families: DCF Models, Earnings-Based, Multiples, Asset-Based, Growth DCF, Economic Profit, Growth Earnings. Every model gets the same audited fundamentals; the fair value of $3.12 builds on their evidence-weighted average, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 13.3% above its aggregate fair value. Rave Restaurant Group Inc currently trades 32% below its own fair value, and the market average says nothing about that. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of Rave Restaurant Group Inc (RAVE)?
The closing price on Nov 6, 2026 was $2.12. Our model-based fair value is $3.12, about +47% upside (undervalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Rave Restaurant Group Inc right now?
The rarer combination: high quality (75/100) AND below fair value. That earns a closer look rather than a quick verdict. The price is below even our cautious bear case ($2.24). The market is more pessimistic than our downside scenario. A fairly wide model range ($2.24 to $4.42) leaves room in how you read the outcome.
Key figures of Rave Restaurant Group Inc
How large is the market capitalisation of Rave Restaurant Group Inc (RAVE)?
The market capitalisation of Rave Restaurant Group Inc is $30.3M. The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of Rave Restaurant Group Inc (RAVE)?
The price-to-sales ratio of Rave Restaurant Group Inc is 2.35 (last twelve months). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of Rave Restaurant Group Inc (RAVE)?
Earnings per share at Rave Restaurant Group Inc are $0.2000 (price ÷ EPS = P/E 10.6). Earnings per share over the last twelve months: total profit spread across every single share.
What is the net margin of Rave Restaurant Group Inc (RAVE)?
The net margin of Rave Restaurant Group Inc is 22.3% (last twelve months). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of Rave Restaurant Group Inc (RAVE)?
The return on equity (ROE) of Rave Restaurant Group Inc is 18.3% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of Rave Restaurant Group Inc (RAVE)?
On an EBIT basis the return on assets of Rave Restaurant Group Inc is 16.9% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of Rave Restaurant Group Inc (RAVE)?
The operating margin of Rave Restaurant Group Inc is 29.8% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Rave Restaurant Group Inc (RAVE)?
Revenue at Rave Restaurant Group Inc is growing +8.8% versus a year earlier (3y avg +2.8%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at Rave Restaurant Group Inc (RAVE)?
Earnings per share at Rave Restaurant Group Inc are growing −16.1% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net cash does Rave Restaurant Group Inc (RAVE) hold?
Rave Restaurant Group Inc holds more cash than debt, $918K net (fiscal year 2026). The company holds more cash than debt, a safety cushion.
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Some data
Nov 8, 2026