Stock fact sheet · data as of
RAVE Restaurant Group, Inc. (RAVE): fair value, margin of safety and Wheel Score
Consumer Cyclical · Restaurants · United States · Value
Is RAVE undervalued?
At 2.17 (close of 16 Oct 2026), RAVE trades 63% below the GLS average fair value of 5.90. That average comes from 8 models run on the latest filings, and 8 of them land above the current price. Margins of safety over 30% are the exception rather than the rule across the ~7,400 stocks we value each night, so the number earns RAVE Restaurant Group, Inc. the full Value points in the Wheel Score - and a closer look at what the market is pricing in.
The 8 models disagree widely: EPV gives 2.25 while Graham Growth gives 11.33. A spread that wide means the average is sensitive to which methods you trust; the model table below shows where each one lands, and the Quote page lets you switch any of them off.
The nightly engine files RAVE under Value: positive earnings at a P/E of 18 or less.
Nine valuation models for RAVE
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | 5.12 | +136% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 2.36 | +9% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 11.33 | +422% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 4.94 | +127% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 6.82 | +214% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 6.37 | +193% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 8.05 | +271% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | - | - | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend; no value tonight |
| EPV | 2.25 | +4% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | 0.9539 | -56% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 0.0000 | -100% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
Financial health is average - RAVE passes 5 of the nine Piotroski tests, which falls one point short of the Sunday Scan's "6 or more" rule. The Financials tab on the Quote page shows which tests fail. The GLS Moat score is 5.8 out of 10: a ten-year record that is consistent in some of the metrics the score tracks (revenue, earnings, margins, cash flow, returns on capital) and patchy in others.
Returns on capital are high - ROIC 16.4%, ROE 16.6%, ROA 14.7% - with debt at 0.01 times equity and a free-cash-flow yield of 11.4%.
RAVE Restaurant Group, Inc. pays no dividend, so the DDM model does not apply and a covered-call holder earns only the premium and any price gain. Revenue comes mainly from Supplier and Distributor Incentive Reve… 39%, Franchise Royalties 37%, Advertising Funds 15% (quarter Q1 FY2025).
Institutional ownership scores 1/10, insider activity 5/10 and Congressional trading 5/10 on the GLS smart-money scales.
| Piotroski F-score | 5 / 9 | ROIC | 16.4% |
|---|---|---|---|
| GLS Moat | 5.8 / 10 | ROE | 16.6% |
| Debt / equity | 0.01 | ROA | 14.7% |
| Free-cash-flow yield | 11.4% | Payout ratio | 0% |
| Institutions | 1 / 10 | Insiders · Congress | 5 · 5 / 10 |
Wheel Score 56: Fair
RAVE scores 56 out of 100 on the Wheel Score (Fair band, 50-64): a usable but unremarkable fit for the wheel strategy. The parts: Value 25/25, Health 11/20, Moat 9/15, Premium 5/20, Stability 6/20. Premium (5/20) is where the points are missing.
Implied volatility is 120% on the near-the-money contracts 20-60 days out - above the 60% ceiling of the sweet spot. Premiums are large, but the Wheel Score tapers the Premium points (5 of 20) because volatility this high usually comes with a reason. Chain open interest is thin - 1,158 contracts across every expiry - so fills at a fair price are not guaranteed; a 30-45-day put may not exist at a usable strike.
Volume runs at 59k shares a day on a market cap of $31M, with a beta of 0.43 - a low beta, so day-to-day moves are smaller than the market's; the Stability part of the Wheel Score gives that 6 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 25 / 25 | 63% margin of safety | |
| Health | 11 / 20 | Piotroski 5/9 | |
| Moat | 9 / 15 | moat 5.8/10 | |
| Premium | 5 / 20 | implied volatility 120% | |
| Stability | 6 / 20 | 59k shares/day, $31M cap, beta 0.43 |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.
Upcoming events
No upcoming earnings date is recorded for RAVE in the nightly calendar.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Restaurants
The 12 companies below are the closest to RAVE Restaurant Group, Inc. by market cap within the Restaurants industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| PC Premium Catering (Holdings) Limited | 9.40 | 0.8286 | -1034% | 9No options | $31M |
| THCH TH International Limited | 1.09 | - | - | 33Weak | $35M |
| STKS The ONE Group Hospitality, Inc. | 1.41 | 49.68 | +97% | 45Weak | $45M |
| CCHH CCH Holdings Ltd Ordinary Shares | 0.9160 | 0.5224 | -75% | 12No options | $18M |
| GENK GEN Restaurant Group, Inc. | 1.69 | 296.32 | +99% | 39No options | $56M |
| ARKR Ark Restaurants Corp. | 4.38 | 16.19 | +73% | 39No options | $16M |
| ESYN EnerSyn Global Inc. | 1.98 | - | - | 27No options | $15M |
| VENU Venu Holding Corporation | 1.13 | - | - | 33Weak | $64M |
| GTIM Good Times Restaurants Inc. | 1.39 | 4.68 | +70% | 60Fair | $15M |
| NROM Noble Roman's, Inc. | 0.6000 | 1.80 | +67% | 39No options | $14M |
| REBN Reborn Coffee, Inc. | 1.52 | - | - | 29No options | $13M |
| MB MasterBeef Group | 4.45 | 7.42 | +40% | 39No options | $76M |
⚖ Compare RAVE with 7 of them All Consumer Cyclical stocks →
Screen the whole market the same way
A free GLS Equity account gets you nightly fair value and the Wheel Score on ~7,400 US stocks, a watchlist, the scanner preview and the Sunday Scan - the same eight-rule screen, emailed every week. Pro adds the full put and call scanners, unlimited watchlists with alerts and the trade journal.
Start free See the Sunday ScanQuestions about RAVE
Is RAVE undervalued right now?
By the GLS models, yes: at 2.17 the stock is 63% below the average fair value of 5.90 (data as of 16 Oct 2026). Whether the discount is deserved is the question to research next.
What is the Wheel Score of RAVE and what does it mean?
RAVE scores 56 out of 100 (Fair). The Wheel Score blends the margin of safety (25 points), Piotroski health (20), the GLS moat (15), the option premium on offer (20) and trading stability (20) into one number that ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned. 80 and above is Prime, 65-79 Good, 50-64 Fair, under 50 Weak.
What is the GLS fair value for RAVE?
5.90 per share as of 16 Oct 2026 - the simple average of the 8 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does RAVE Restaurant Group, Inc. report earnings next?
No upcoming earnings date is recorded for RAVE in our calendar as of 16 Oct 2026; the Calendars page is refreshed every morning.
Does RAVE have listed options, and how liquid are they?
Yes. The nightly snapshot found 30 listed contracts with 1,158 open interest across all expiries and implied volatility of 120% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.