Complete RAVE Stock Valuation Analysis
Comprehensive intrinsic value analysis using 6 different methodologies
RAVE DCF Analysis
RAVE (RAVE Restaurant Group, Inc.) discounted cash flow analysis with multiple scenarios, growth assumptions, and terminal value calculations
Financial Projections
| Metrics | 2022 (Historical) | 2023 (Historical) | 2024 (Historical) | 2025 (Projected) | 2026 (Projected) | 2027 (Projected) | 2028 (Projected) | 2029 (Projected) |
|---|---|---|---|---|---|---|---|---|
| Revenue | $10.7M | $11.9M | $12.2M | $13.1M | $14.0M | $14.9M | $15.7M | $16.5M |
| Revenue Growth % | - | 11.2% | 2.2% | 7.7% | 7.0% | 6.3% | 5.6% | 5.1% |
| EBIT | $2.5M | $1.1M | $3.2M | $2.5M | $2.7M | $2.9M | $3.1M | $3.3M |
| EBIT Margin % | 23.2% | 9.1% | 26.0% | 19.4% | 19.5% | 19.6% | 19.7% | 19.8% |
| Tax Rate % | 0.0% | 25.0% | 20.0% | 14.0% | 15.1% | 16.2% | 17.3% | 18.4% |
| NOPAT | $2.5M | $808.0K | $2.5M | $2.2M | $2.3M | $2.4M | $2.6M | $2.7M |
| NOPAT Margin % | 23.2% | 6.8% | 20.8% | 16.7% | 16.6% | 16.4% | 16.3% | 16.2% |
| Capex | $162.0K | $234.0K | $76.0K | $209.4K | $212.7K | $214.7K | $215.5K | $215.1K |
| Capex / Revenue % | 1.5% | 2.0% | 0.6% | 1.6% | 1.5% | 1.4% | 1.4% | 1.3% |
| Depreciation | $608.0K | $651.0K | $629.0K | $712.9K | $762.4K | $810.1K | $855.8K | $899.1K |
| D&A / Revenue % | 5.7% | 5.5% | 5.2% | 5.4% | 5.4% | 5.4% | 5.4% | 5.4% |
| Change in NWC | $1.3M | $-2.5M | $2.9M | $0 | $0 | $0 | $0 | $0 |
| NWC Change / Revenue % | 12.4% | -21.3% | 23.7% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
| Unlevered FCF | $1.6M | $3.8M | $197.8K | $2.7M | $2.9M | $3.0M | $3.2M | $3.4M |
| UFCF % Chg. | - | 135.1% | -94.7% | 1259.2% | 6.7% | 6.0% | 5.3% | 4.7% |
| FCF / Revenue % | 14.9% | 31.6% | 1.6% | 20.5% | 20.5% | 20.4% | 20.4% | 20.3% |
| Discount Factor | - | - | - | 0.953 | 0.908 | 0.865 | 0.824 | 0.785 |
| Present Value of FCF | - | - | - | $2.6M | $2.6M | $2.6M | $2.6M | $2.6M |
| Sum of PV of UFCF | - | - | - | $2.6M | $5.2M | $7.8M | $10.4M | $13.1M |
WACC Calculation
Weighted Average Cost of Capital used for discounting cash flows.
| WACC Calculation | Value |
|---|---|
| Cost of Debt | 7.4% |
| Tax Rate | 14.0% |
| After Tax Cost of Debt | 6.4% |
| Risk Free Rate | 4.40% |
| Market Risk Premium | 4.3% |
| Beta | 0.12 |
| Cost of Equity | 4.9% |
| Total Debt | $957.0K |
| Market Cap | $37.6M |
| Total Capital | $38.5M |
| Debt Weighting | 2.5% |
| Equity Weighting | 97.5% |
| WACC | 5.0% |
Terminal Value
Choose between perpetuity growth or exit multiple methods.
| Terminal Value Calculation | Value |
|---|---|
| Terminal Growth Rate | 2.5% |
| Final Year FCF | $3.4M |
| Terminal Value | $139.0M |
| PV of Terminal Value | $109.0M |
| Cumulative PV of UFCF | $13.1M |
| Net Debt | $-1.9M |
| Equity Value | $124.0M |
| Shares Outstanding | 14.6M |
| Implied Share Price | $8 |
| Current Share Price | $3 |
| Implied Upside/(Downside) | +220.5% |
Valuation Summary
$8.48
Implied Price
$2.65
Current Price
+220.5%
Upside/Downside
5.0%
WACC
RAVE Peer Valuation Analysis
Relative valuation based on comparable company trading multiples
Peer Valuation Analysis
Fair Value Range Analysis
Based on median multiples from 8 peer companies in Consumer Cyclical
P/E Ratio
$2.95
+11.6%
Peer Median: 15.7x
EV/EBITDA
$5.20
+96.5%
Peer Median: 19.5x
P/S Ratio
$0.18
-93.3%
Peer Median: 0.2x
Interpretation: Each multiple provides a different perspective on fair value. Consider which multiple is most relevant for RAVE's business model and current situation.
Multiple Comparison
| Multiple | RAVE Current | Peer Median | Peer Average | Premium/Discount | Assessment |
|---|---|---|---|---|---|
| P/E Ratio | 14.1x | 15.7x | 15.4x | -10.4% | Fair Value |
| EV/EBITDA | 9.4x | 19.5x | 21.0x | -51.7% | Undervalued |
| P/S Ratio | 3.1x | 0.2x | 1.7x | 1396.3% | Overvalued |
Peer Companies
Click any company to view their valuation
| Company | Market Cap | P/E Ratio | EV/EBITDA | P/S Ratio |
|---|---|---|---|---|
| $0.12B | 0.0x | 123.3x | 0.1x | |
| $0.04B | 0.0x | 0.0x | 0.0x | |
| $0.04B | 4.9x | 718.7x | 0.2x | |
| $0.04B | 14.1x | 9.4x | 3.1x | |
| $0.04B | 0.0x | 42.4x | 0.1x | |
| $0.02B | 0.0x | 0.0x | 1.7x | |
| $0.02B | 15.7x | 12.6x | 0.1x | |
| $219.57B | 27.0x | 19.5x | 8.5x |
RAVE Graham Number
Benjamin Graham's conservative valuation formula for defensive investors
Input Data
| EPS (TTM) | $0.19 | Latest 10-K |
| Book Value per Share | $0.87 | Latest 10-K Balance Sheet |
| Graham Constant | 22.5 | Benjamin Graham's formula |
Graham Number Result
$1.92
Intrinsic Value
$2.65
Current Price
-27.5%
Upside/Downside
Confidence: High
Conservative value investing approach
Calculation Breakdown
Formula:
√(22.5 × EPS × BVPS)
Step 1: Multiply constant by EPS
22.5 × 0.19 = 4.23
Step 2: Multiply by Book Value per Share
4.23 × 0.87 = 3.68
Step 3: Take square root
√3.68 = 1.92
Graham Number Result:
$1.92
RAVE Graham Intrinsic Value
Growth-adjusted intrinsic value with two formula variants
Formula Selection
V = EPS × (8.5 + 2g)
Graham's original P/E shortcut for growth, no interest-rate adjustment
V = [EPS × (8.5 + 2g) × 4.4] / Y
Graham's 1974 refinement: adds rate-environment sensitivity
Active Formula: Base-Growth
0.19 × (8.5 + 2 × 24.6%)
Input Data & Growth Assumptions
Current EPS (TTM)$0.19
Latest 10-K • 2024-06-30T00:00:00
Historical 3Y24.6%
Financial statements
Custom
%
Enter a positive growth rate estimate (0-50%)
Graham Intrinsic Value Result
$10.87
Intrinsic Value
$2.65
Current Price
+311.1%
Upside/Downside
Base Formula
Growth: 24.6%
RAVE Peter Lynch Fair Value
Growth-based valuation using PEG ratio analysis for growth stocks
Fair Value Calculation
EPS (TTM)$0.19
Latest 10-K • 2024-06-30T00:00:00
Historical 3Y24.6%
3-year earnings growth
24.6%
1%50%
Fair Value Formula: EPS × Growth Rate
$0.19 × 24.6% = $4.64
$4.64
Fair Value
$2.65
Current Price
+75.3%
Upside/Downside
PEG Analysis
14.1x
Current P/E
24.6%
Growth Rate
0.57
PEG Ratio (P/E ÷ Growth Rate)
Undervalued
PEG Ratio Interpretation:
• PEG < 1.0: Undervalued (growth exceeds P/E)
• PEG = 1.0: Fairly valued (ideal Lynch ratio)
• PEG > 1.5: Overvalued (paying premium for growth)
Peter Lynch's Rule:
"The P/E ratio of any company that's fairly priced will equal its growth rate." A stock with 15% growth should trade at a P/E of 15 (PEG = 1.0).
RAVE Earnings Power Value (EPV)
Normalized earnings-based valuation for sustainable earning power assessment
Earnings Normalization
| Earnings Component | Amount ($B) | Description |
|---|---|---|
| Reported Earnings | 0.0 | Base earnings from financial statements |
| Normalized Earnings | 0.0 | Final normalized earning power |
One-time Items: Remove non-recurring gains/losses
Cyclical Adjustment: Normalize for economic cycle position
EPV Result
$1.87
EPV per Share
$2.65
Current Price
-29.2%
Upside/Downside
9.0%
WACC: 9.0% (calculated from market data)
Confidence: High
Normalized earnings approach
EPV Calculation Breakdown
Enterprise Value Calculation
| Normalized Earnings | $0.0B |
| Cost of Capital | 9.0% |
| Enterprise Value | $0.0B |
Per Share Value
| Enterprise Value | $0.0B |
| Shares Outstanding | 0.0B |
| EPV per Share | $1.87 |
WACC Components
| Cost of Equity | 9.2% |
| After-Tax Cost of Debt | 3.5% |
| Equity Weight | 97.6% |
| Debt Weight | 2.4% |
| WACC | 9.0% |