Rave Restaurant GroupRAVE +5.88%76 Altman Z-Score is 16.52 as of Jun. 29, 2026, which is 338% above its 10-year median of 3.77. GuruFocus rates RAVE with a GF Score™ of 76/100 and a GF Value™ of $2.72 (Modestly Overvalued). The stock has 1 warning sign investors should review. Among 360 Restaurants companies, Rave Restaurant Group ranks better than 98.89% on this metric.
The Altman Z-Score is a model designed to predict the likelihood of a company going bankrupt within the next two years. Created by American finance professor Edward Altman in 1968, the model is specifically designed for publicly traded manufacturing companies with assets greater than $1 million.
Good Sign:
Altman Z-score of 16.52 is strong.
Rave Restaurant Group has a Altman Z-Score of 16.52, indicating it is in Safe Zones. This implies the Altman Z-Score is strong.
The zones of discrimination were as such:
When Altman Z-Score <= 1.8, it is in Distress Zones.
When Altman Z-Score >= 3, it is in Safe Zones.
When Altman Z-Score is between 1.8 and 3, it is in Grey Zones.
The historical rank and industry rank for Rave Restaurant Group's Altman Z-Score or its related term are showing as below:
RAVE'
s Altman Z-Score Range Over the Past 10 Years
Min: -0.11 Med: 3.77 Max: 16.92
Current: 16.52
During the past 13 years, Rave Restaurant Group's highest Altman Z-Score was 16.92. The lowest was -0.11. And the median was 3.77.
Rave Restaurant Group (NAS:RAVE) Altman Z-Score Explanation
X1: The Working Capital/Total Assets (WC/TA) ratio is a measure of the net liquid assets of the firm relative to the total capitalization. Working capital is defined as the difference between current assets and current liabilities. Ordinarily, a firm experiencing consistent operating losses will have shrinking current assets in relation to total assets. Altman found this one proved to be the most valuable liquidity ratio comparing with the current ratio and the quick ratio. This is however the least significant of the five factors.
X2: Retained Earnings/Total Assets: the RE/TA ratio measures the leverage of a firm. Retained earnings is the account which reports the total amount of reinvested earnings and/or losses of a firm over its entire life. Those firms with high RE, relative to TA, have financed their assets through retention of profits and have not utilized as much debt.
X3, Earnings Before Interest and Taxes/Total Assets (EBIT/TA): This ratio is a measure of the true productivity of the firm's assets, independent of any tax or leverage factors. Since a firm's ultimate existence is based on the earning power of its assets, this ratio appears to be particularly appropriate for studies dealing with corporate failure. This ratio continually outperforms other profitability measures, including cash flow.
X4, Market Value of Equity/Book Value of Total Liabilities (MVE/TL): The measure shows how much the firm's assets can decline in value (measured by market value of equity plus debt) before the liabilities exceed the assets and the firm becomes insolvent.
X5, Revenue/Total Assets (S/TA): The capital-turnover ratio is a standard financial ratio illustrating the sales generating ability of the firm's assets.
Altman Z-Score does not apply to financial companies.
Rave Restaurant Group Altman Z-Score Related Terms
Rave Restaurant Group Altman Z-Score Historical Data
* Premium members only.
The historical data trend for Rave Restaurant Group's Altman Z-Score 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 vs THCH, STKS, ARKR: Altman Z-Score Comparison
For the Restaurants subindustry, Rave Restaurant Group's Altman Z-Score, along with its competitors' market caps and Altman Z-Score 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 Altman Z-Score vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, Rave Restaurant Group's Altman Z-Score distribution charts can be found below:
* The bar in red indicates where Rave Restaurant Group's Altman Z-Score falls into.
Altman Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.
* 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. GuruFocus does not calculate Altman Z-Score when X4 or X5 value is 0.
Rave Restaurant Group (RAVE) has a Altman Z-Score of 16.52 as of Jun. 29, 2026. The Altman Z-score measures a company's bankruptcy risk. View historical data on Rave Restaurant Group and its competitors. This is 338% above median its historical median of 3.77. According to the industry distribution chart, Rave Restaurant Group ranks #4 out of 360 companies in the Restaurants industry, placing it in the top 1.1%.
Is Rave Restaurant Group's Altman Z-Score too high?
Rave Restaurant Group's current Altman Z-Score of 16.52 is 338% above median its 10-year median of 3.77. The Restaurants industry median Altman Z-Score is 2.25. Rave Restaurant Group's value of 16.52 is 635.9% above this industry median. Based on the distribution chart, Rave Restaurant Group ranks #4 out of 360 companies in the Restaurants industry, which is in the top quartile — a strong position relative to peers. Overall, Rave Restaurant Group has a GF Score™ of 76/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Rave Restaurant Group's Altman Z-Score compare to THCH and STKS?
According to the Restaurants industry distribution chart, Rave Restaurant Group ranks #4 out of 360 companies for Altman Z-Score. This places Rave Restaurant Group in the top 1% of its industry — outperforming the majority of peers. The industry median Altman Z-Score is 2.25. Rave Restaurant Group's value of 16.52 is 635.9% above this benchmark. While the company's 10-year median is 3.77 vs. the industry median of 2.25, 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 Altman Z-Score for a Restaurants company?
The median Altman Z-Score among Restaurants companies is 2.25, based on 360 companies in the industry. Companies in the top quartile (top 25%) have a Altman Z-Score significantly above this median, while those in the bottom quartile fall well below. However, Altman Z-Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Rave Restaurant Group's current Altman Z-Score of 16.52 is 635.9% 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 Altman Z-Score mean?
A high Altman Z-Score can signal that a stock is expensive relative to its fundamentals. The Altman Z-score measures a company's bankruptcy risk. View historical data on Rave Restaurant Group and its competitors. For the Restaurants industry, the median Altman Z-Score is 2.25 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Rave Restaurant Group's current Altman Z-Score is 16.52, which is 338% above median its own 10-year median of 3.77. 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 $2.72, compared to a current price of $3.40 — trading 25% above its estimated fair value. The current Altman Z-Score is 16.52, which is 338% above median its 10-year median of 3.77 and 635.9% above the Restaurants industry median of 2.25. Rave Restaurant Group's overall GF Score™ is 76/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Altman Z-Score calculated?
Altman Z-Score is calculated from a company's financial statements. For Rave Restaurant Group (RAVE), the current Altman Z-Score is 16.52 as of Jun. 29, 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 $3.40 is trading 25% above its estimated GF Value™ of $2.72.
GuruFocus considers Rave Restaurant Group to be Modestly Overvalued.
Key valuation signals for RAVE:
Altman Z-Score: 16.52 (338% above median its 10-year median of 3.77)
GF Value™: $2.72 vs. price of $3.40 (25% above fair value)
Industry Position: 635.9% above the Restaurants median (#4 of 360)
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.
76GF Score
Get the complete analysis for RAVE
Altman Z-Score is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
RAVE has been successfully added to your 
