Wingstop (WING), a franchiser of chicken wing restaurants, is overvalued by many measures. I wrote an article on Seeking Alpha about its valuation compared to other publicly traded restaurant stocks, and my experience shorting Wingstop stock. They are growing quite fast, and we know this is rarely sustainable in the long run. The valuation multiples are quite high. Even some well-known AI stocks are cheaper when looking for growth at a reasonable price (GARP). I know it's not fair to compare a mid-cap to a mega large-cap such as NVDA, therefore this is just a silly and quick comparison I decided to do as an exercise. Surprisingly, SMCI's market cap is only about double WING's market cap!
| Stock | Revenue Growth (YoY) | EPS Growth (quarterly YoY) | PE (TTM) | PEG (5 yr expected) | PS |
|---|---|---|---|---|---|
| WING | 31.98% | 69.9% | 126.19 | 3.68 | 21.88 |
| SMCI | 109.77% | 82.2% | 23.52 | 0.38 | 1.90 |
| NVDA | 194.69% | 168.2% | 64.70 | 1.07 | 35.68 |
| INOD | 40.65% | 65.6% | 171 | 8.55 | 5.37 |
| AMD | 6.4% | 881.5% | 199.87 | 0.43 | 11.81 |