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Rave Restaurant Group (RAVE) Fair Value & Analysis

Consumer Cyclical · US · Market cap $47.8M

RR Rave Restaurant Group logo Rave Restaurant Group RAVE · US
Price$3.14
Fair Value$3.09
Upside-1.6%
Quality85/100
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Mixed Growth
Highly profitable · 23.2% net margin
Low debt · generates free cash flow
Mixed vs. peers (8/14)
Wide moat 79/100
Evidence: High Range $2.26 – $4.11 Share as image

Fair value as of: Jul 18, 2026

From 22 valuation models · updated 23 days ago

Share price −4.8% over the past month.

A strong business, currently priced close to our fair value.

What matters now

  • The price sits close to our fair value, market and models broadly agree here, little valuation tension.
  • A fairly wide model range ($2.26 to $4.11) leaves room in how you read the outcome.
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Price vs Fair Value (5 years)

$3.64 $0.8410 Fair Value $3.09 Apr 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 18, 2026.

How to read this chart

60‑month range $0.8410 – $3.64 · fair‑value band $2.26 – $4.11 · the $3.14 price screens above the $3.09 fair value. Dashed = 300-day average. As of Jul 18, 2026.

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Analysis

Rave Restaurant Group (RAVE) currently trades at $3.14, while our model-based Fair Value estimate is $3.09, implying the stock looks roughly 1.6% fairly valued today. The Quality Score stands at 85/100 (high quality), in the Consumer Cyclical sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: high).

Over the trailing twelve months, Rave Restaurant Group generated revenue of $12.6M at a net margin of 23.2%. Revenue grew 8.7% year over year. It earns a return on equity of 19.7%. The balance sheet holds a net cash position of $2.3M. Fundamentals as of Jul 18, 2026

Our scenario range runs from $2.26 (bear case) to $4.11 (bull case); at $3.14, the current price sits within that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 16% below its 52-week high and 40% above its 52-week low, currently above its 200-day average. For context, the median of 10 Consumer Cyclical peers we cover trades at -47% fair-value upside, at -2%, RAVE screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model 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. Evidence
Highest evidence
Growth DCF $1.79 $2.20 $2.82 80
Residual Income $0.9900 $1.29 $3.21 76
Rev-Margin DCF $1.20 $1.55 $2.00 74
All 22 models by family
DCF Models
FCF DCF $1.74 $2.18 $2.89 38
Owner Earnings $1.51 $1.89 $2.50 31
5Y Revenue Exit $1.20 $1.50 $1.94 39
5Y EBITDA Exit $1.85 $2.63 $3.66 41
5Y P/E Exit $2.26 $3.35 $4.64 38
10Y Revenue Exit $1.44 $1.66 $1.88 36
10Y EBITDA Exit $1.79 $2.26 $2.75 37
10Y P/E Exit $2.00 $2.63 $3.23 35
Earnings-Based
Graham-Dodd $1.29 $1.58 $1.78 54
EPV $1.23 $1.37 $1.48 59
Multiples
P/E Multiple $3.14 $4.18 $5.23 63
P/S Multiple $0.7600 $1.02 $1.27 58
P/B Multiple $2.42 $3.23 $4.04 55
EV/EBIT $3.15 $4.18 $5.22 53
EV/EBITDA $2.26 $3.00 $3.74 54
EV/Revenue $0.7600 $1.06 $1.37 43
Asset-Based
NCAV (Graham) $0.5000 $0.6700 $1.00 50
Growth DCF
Growth DCF $1.79 $2.20 $2.82 80
Rev-Margin DCF $1.20 $1.55 $2.00 74
Economic Profit
Residual Income $0.9900 $1.29 $3.21 76
ROIC Compounder $1.23 $1.39 $1.55 72
Growth Earnings
Growth-Adj P/E $2.21 $3.16 $4.11 68

Widest divergence: Growth Earnings ($3.16) versus Asset-Based ($0.6700). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) $12.6M
Revenue growth (YoY) +8.7%
Net margin 23.2%
Return on equity 19.7%
Free cash flow $3.3M FY2025
P/E ratio 16.0
More key figures
Operating margin 29.7%
EPS (TTM) $0.2100
EPS growth (YoY) +13.1%
Net cash $2.3M FY2025

Figures from reported company fundamentals · as of Jul 18, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 85/100

Of which business quality 82 · Market factors (momentum, volatility) 52

Profitability 80
Margins and returns on capital today
Quality Growth 46
Are margins and returns improving?
Cashflow 86
Earnings quality: real cash, not paper profit
Fin. Strength 90
Balance sheet, leverage, solvency risk
Investment 97
Disciplined investing over empire-building
Low Volatility 59
Calm price path (market factor)
Momentum 48
Price trend over the last 3–12 months (market factor)
52W Momentum 49
Distance to the 52-week high (market factor)
Net Issuance 92
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

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. It operates through Pizza Inn Franchising, Pie Five Franchising and Other segments.

Full company description

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. 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.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Rave Restaurant Group reported revenue of $12.0M in FY2025 versus $8.6M in FY2021, a compound +8.8%/yr. Reported net income was $2.7M in FY2025, compounding +15.5%/yr from FY2021.

Growth Quality 70/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2025)
$12.0M
Latest YoY
−0.9%
Avg. growth/yr (3Y) 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.
+4.0%
Avg. growth/yr (5Y) 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.
+3.7%
Avg. growth/yr (32Y) 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.
−4.5%
Revenue +8.8%/yr
FY21 $8.6M
FY22 $10.7M
FY23 $11.9M
FY24 $12.2M
FY25 $12.0M
Net income +15.5%/yr
FY21 $1.5M
FY22 $8.0M
FY23 $1.6M
FY24 $2.5M
FY25 $2.7M

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Cite: Fair Value Calculator (2026). "Rave Restaurant Group Fair Value". https://www.fairvalue-calculator.com/stock/RAVE

Peer Group

Restaurants · 227 stocks

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.

Quality Score 85 · Top 25%
Fair Value upside −2% · Above median
Return on equity (TTM) 20% · Top 25%
Return on assets 13% · Top 25%
Net margin (TTM) 23% · Top 25%
Operating margin (TTM) 30% · Top 25%
Revenue growth 9% · Above median
Debt / equity 0.16× · Higher than median

Valuation Multiples vs Restaurants median · lower = cheaper

P/E (TTM) 16.0× · Cheaper than median
P/B 3.37× · Pricier than 75% of peers
P/S (TTM) 3.78× · Pricier than 75% of peers
P/FCF 14.3× · Pricier than 75% of peers
EV/EBITDA 12.5× · Pricier than 75% of peers
PEG 4.99× · Pricier than 75% of peers

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 31 · sector 28
FUTURE 44 · sector 20
PAST 79 · sector 16
HEALTH 92 · sector 97
DIVIDEND 0 · sector 58

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Restaurants stocks, each showing price versus our Fair Value estimate (as of Jul 18, 2026).

Stock Price Fair Value vs Fair Value
McDonald's Corporation MCDS C$24.01 C$10.84 -55%
Starbucks Corporation SBUX $105.49 $35.83 -66%
Chipotle Mexican Grill, Inc CMG $34.63 $18.43 -47%
Yum! Brands, Inc YUM $163.54 $59.66 -64%
Restaurant Brands International Inc QSR C$104.19 C$36.37 -65%
Darden Restaurants, Inc DRI $195.74 $173.68 -11%
Yum China Holdings YUMC $43.90 $55.10 +26%
Texas Roadhouse, Inc TXRH $197.03 $104.89 -47%
Dutch Bros Inc BROS $68.36 $12.80 -81%
Domino's Pizza, Inc DPZ $322.18 $231.96 -28%

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Frequently asked questions

Is Rave Restaurant Group (RAVE) overvalued or undervalued?
As of Jul 18, 2026, our model estimates a fair value of $3.09 versus a price of $3.14, about −2% (fairly valued).
What is the fair value of RAVE?
Our model-based fair value for Rave Restaurant Group is $3.09 (as of Jul 18, 2026), built from audited fundamentals. The current price is $3.14.
What is the quality score of RAVE?
Rave Restaurant Group has a Quality Score of 85/100. 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 revenue of Rave Restaurant Group (RAVE)?
Rave Restaurant Group reported trailing-twelve-month revenue of about $12.6M (latest available figure, as of Jul 18, 2026).
What is the net profit margin of RAVE?
The net profit margin of Rave Restaurant Group is about 23.2%, meaning it keeps roughly 23.2% of revenue as net income. Based on the latest reported figures.

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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