Rave Restaurant GroupRAVE +2.42%77 Return-on-Tangible-Equity is 20.18% as of Mar. 2026, which is 18% above its 10-year median of 17.17. GuruFocus rates RAVE with a GF Score™ of 77/100 and a GF Value™ of $2.73 (Modestly Overvalued). The stock has 1 warning sign investors should review. Among 331 Restaurants companies, Rave Restaurant Group ranks better than 69.18% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Rave Restaurant Group's annualized net income for the quarter that ended in Mar. 2026 was $3.20 Mil. Rave Restaurant Group's average shareholder tangible equity for the quarter that ended in Mar. 2026 was $15.86 Mil. Therefore, Rave Restaurant Group's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 20.18%.
The historical rank and industry rank for Rave Restaurant Group's Return-on-Tangible-Equity or its related term are showing as below:
RAVE'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -352.6 Med: 17.17 Max: 101.46
Current: 19.92
During the past 13 years, Rave Restaurant Group's highest Return-on-Tangible-Equity was 101.46%. The lowest was -352.60%. And the median was 17.17%.
RAVE's Return-on-Tangible-Equity is ranked better than 69.18% of 331
companies
in the Restaurants industry
Industry Median: 8.76
vs RAVE: 19.92
Rave Restaurant Group (NAS:RAVE) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Rave Restaurant Group Return-on-Tangible-Equity Related Terms
Rave Restaurant Group Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Rave Restaurant Group's Return-on-Tangible-Equity can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Rave Restaurant Group Return-on-Tangible-Equity Chart
RAVE vs THCH, STKS, ARKR: Return-on-Tangible-Equity Comparison
For the Restaurants subindustry, Rave Restaurant Group's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Rave Restaurant Group Return-on-Tangible-Equity vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, Rave Restaurant Group's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Rave Restaurant Group's Return-on-Tangible-Equity falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 20.18% mean?
Rave Restaurant Group (RAVE) has a Return-on-Tangible-Equity of 20.18% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Rave Restaurant Group and its competitors. This is 18% above median its historical median of 17.17. According to the industry distribution chart, Rave Restaurant Group ranks #102 out of 331 companies in the Restaurants industry, placing it in the top 30.8%.
Is Rave Restaurant Group's Return-on-Tangible-Equity too high?
Rave Restaurant Group's current Return-on-Tangible-Equity of 20.18% is 18% above median its 10-year median of 17.17. The Restaurants industry median Return-on-Tangible-Equity is 8.76. Rave Restaurant Group's value of 20.18% is 130.4% above this industry median. Based on the distribution chart, Rave Restaurant Group ranks #102 out of 331 companies in the Restaurants industry, which is above the industry midpoint. Overall, Rave Restaurant Group has a GF Score™ of 77/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Rave Restaurant Group's Return-on-Tangible-Equity compare to THCH and STKS?
According to the Restaurants industry distribution chart, Rave Restaurant Group ranks #102 out of 331 companies for Return-on-Tangible-Equity. This puts Rave Restaurant Group in the upper half of its industry. The industry median Return-on-Tangible-Equity is 8.76. Rave Restaurant Group's value of 20.18% is 130.4% above this benchmark. While the company's 10-year median is 17.17 vs. the industry median of 8.76, Rave Restaurant Group has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Equity for a Restaurants company?
The median Return-on-Tangible-Equity among Restaurants companies is 8.76, based on 331 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Rave Restaurant Group's current Return-on-Tangible-Equity of 20.18% is 130.4% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Rave Restaurant Group and its competitors. For the Restaurants industry, the median Return-on-Tangible-Equity is 8.76 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Rave Restaurant Group's current Return-on-Tangible-Equity is 20.18%, which is 18% above median its own 10-year median of 17.17. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Rave Restaurant Group stock overvalued right now?
Based on GuruFocus' analysis, Rave Restaurant Group (RAVE) is currently considered Modestly Overvalued. The stock's GF Value™ is $2.73, compared to a current price of $3.38 — trading 23.8% above its estimated fair value. The current Return-on-Tangible-Equity is 20.18%, which is 18% above median its 10-year median of 17.17 and 130.4% above the Restaurants industry median of 8.76. Rave Restaurant Group's overall GF Score™ is 77/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Rave Restaurant Group (RAVE), the current Return-on-Tangible-Equity is 20.18% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Rave Restaurant Group (RAVE) Overvalued in 2026?
Based on GuruFocus' analysis, Rave Restaurant Group stock appears to be overvalued.
The current stock price of $3.38 is trading 23.8% above its estimated GF Value™ of $2.73.
GuruFocus considers Rave Restaurant Group to be Modestly Overvalued.
Key valuation signals for RAVE:
Return-on-Tangible-Equity: 20.18% (18% above median its 10-year median of 17.17)
GF Value™: $2.73 vs. price of $3.38 (23.8% above fair value)
Industry Position: 130.4% above the Restaurants median (#102 of 331)
No single metric tells the full story. See the RAVE stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Rave Restaurant Group Inc operates and franchises pizza buffet, delivery/carry-out, express restaurants, and ghost kitchens. It operates restaurants under the brand name, Pizza Inn, and Pie Five Pizza Company. It has three operating segments. The Pizza Inn Franchising and Pie Five Franchising segments establish franchisees, licensees, and territorial rights. The corporate administration and other segments. The Pizza Inn Franchising segment accounts for the majority of the company's revenue. Geographically, it generates the majority of the revenue from the United States.
77GF Score
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