Latest Ratios: P/E Ratio 41.5x · EV/EBITDA 13.9x · ROE 3.2%. (2018–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 |
|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $793M | $1000M | $1.2B | $1.2B | $814M | $808M | — | — | — |
| Enterprise Value | $1.5B | $1.7B | $1.9B | $1.8B | $1.3B | $1.2B | — | — | — |
| P/E Ratio → | 41.48 | 51.32 | 62.33 | 49.02 | 123.00 | — | — | — | — |
| P/S Ratio | 0.65 | 0.82 | 1.15 | 1.38 | 1.11 | 1.34 | — | — | — |
| P/B Ratio | 1.29 | 1.60 | 1.96 | 2.19 | 1.56 | 1.60 | — | — | — |
| P/FCF | — | — | — | 115.49 | — | 29.61 | — | — | — |
| P/OCF | 6.30 | 7.94 | 10.08 | 12.90 | 12.93 | 12.83 | — | — | — |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 |
|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 1.41 | 1.91 | 2.00 | 1.74 | 2.05 | — | — | — |
| EV / EBITDA | 13.89 | 15.79 | 20.10 | 21.67 | 24.86 | 22.52 | — | — | — |
| EV / EBIT | 44.75 | 50.88 | 47.76 | 40.49 | 71.33 | 60.10 | — | — | — |
| EV / FCF | — | — | — | 167.82 | — | 45.08 | — | — | — |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 |
|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 13.0% | 13.0% | 78.0% | 21.3% | 19.1% | 20.7% | 8.7% | 20.0% | 20.4% |
| Operating Margin | 2.8% | 2.8% | 3.8% | 4.6% | 2.3% | 3.7% | -13.8% | -8.6% | 0.9% |
| Net Profit Margin | 1.6% | 1.6% | 1.9% | 2.8% | 0.9% | -0.4% | -14.5% | -10.4% | -3.5% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 |
|---|---|---|---|---|---|---|---|---|---|
| ROE | 3.2% | 3.2% | 3.3% | 4.7% | 1.3% | -0.5% | -15.3% | -12.9% | -3.3% |
| ROA | 1.2% | 1.2% | 1.4% | 2.1% | 0.6% | -0.2% | -5.0% | -5.5% | -1.9% |
| ROIC | 1.9% | 1.9% | 2.3% | 2.9% | 1.3% | 1.8% | -3.9% | -3.9% | 0.4% |
| ROCE | 2.3% | 2.3% | 3.1% | 3.8% | 1.7% | 2.4% | -5.1% | -4.9% | 0.5% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 |
|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 1.18 | 1.18 | 1.36 | 1.08 | 0.97 | 0.94 | 1.99 | 1.75 | 0.52 |
| Debt / EBITDA | 6.80 | 6.80 | 8.38 | 7.36 | 9.92 | 8.68 | — | — | 6.64 |
| Net Debt / Equity | — | 1.15 | 1.30 | 0.99 | 0.87 | 0.84 | 1.87 | 1.71 | 0.48 |
| Net Debt / EBITDA | 6.60 | 6.60 | 8.03 | 6.76 | 8.95 | 7.73 | — | — | 6.09 |
| Debt / FCF | — | — | — | 52.33 | — | 15.47 | — | — | — |
| Interest Coverage | 2.02 | 2.02 | 3.22 | 5.47 | 3.41 | 1.02 | -2.05 | -1.88 | — |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 |
|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 0.29 | 0.29 | 0.40 | 0.62 | 0.67 | 0.70 | 0.64 | 0.33 | 0.80 |
| Quick Ratio | 0.25 | 0.25 | 0.36 | 0.57 | 0.62 | 0.66 | 0.60 | 0.29 | 0.74 |
| Cash Ratio | 0.13 | 0.13 | 0.24 | 0.43 | 0.50 | 0.54 | 0.51 | 0.15 | 0.44 |
| Asset Turnover | — | 0.70 | 0.67 | 0.70 | 0.66 | 0.57 | 0.34 | 0.44 | 0.53 |
| Inventory Turnover | 148.18 | 148.18 | 36.47 | 130.35 | 117.47 | 118.56 | 107.21 | 128.72 | 130.22 |
| Days Sales Outstanding | — | 2.05 | 2.60 | 2.26 | 3.08 | 2.70 | 4.17 | 4.80 | 1.99 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 |
|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | — | — | — | — | — | — | — | — | — |
| Payout Ratio | — | — | — | — | — | — | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 |
|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 2.4% | 1.9% | 1.6% | 2.0% | 0.8% | — | — | — | — |
| FCF Yield | — | — | — | 0.9% | — | 3.4% | — | — | — |
| Buyback Yield | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | — | — | — |
| Total Shareholder Yield | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | — | — | — |
| Shares Outstanding | — | $63M | $62M | $61M | $60M | $48M | $59M | $59M | $45M |
Capital intensity outpacing cash
According to current market data, FWRG trades at a forward P/E of 74.07, which suggests that investors are pricing in aggressive future earnings growth that may be difficult to sustain given the company's recent history of thin net margins and inconsistent free cash flow generation.
The valuation premium relative to peers like Denny's and Cracker Barrel implies a market expectation of rapid, high-quality scaling that has yet to materialize in bottom-line profitability. Investors should monitor whether the current EV/EBITDA multiple of 13.82 can be maintained if the pace of new unit openings slows or if inflationary pressures continue to compress operating margins.
Based on reported figures, FWRG's ROIC has struggled to gain traction, hovering near 0.1% to 0.5% over the last ten quarters, which indicates that the company is currently failing to generate meaningful returns on the capital deployed into its aggressive restaurant expansion and franchise acquisition strategy.
The persistent low return on invested capital suggests that the costs associated with building out new locations and re-acquiring franchised units are currently outweighing the incremental earnings generated by these assets. This trend warrants further investigation into whether the daytime-only model can achieve the necessary throughput to drive higher capital efficiency as the store base matures.
As reported in financial statements, FWRG's cash conversion cycle remains tight, often fluctuating near 1 day, which reflects a business model that relies on rapid inventory turnover but lacks the significant supplier leverage typically seen in larger, more established casual dining restaurant chains.
The low asset turnover ratio of 0.19 suggests that the company's heavy investment in physical restaurant infrastructure is not yet being fully utilized to drive top-line revenue growth. Without a significant improvement in asset utilization, the company may continue to face challenges in achieving the economies of scale required to improve its narrow operating margins.
According to recent SEC filings, FWRG's debt-to-equity ratio has climbed to 1.21 as of 2026Q1, signaling that the company's reliance on debt-funded growth is increasing its financial risk profile and reducing its capacity to absorb potential shocks in the consumer discretionary sector.
The interest coverage ratio, which has dipped as low as 0.57 in recent periods, suggests that debt service is becoming increasingly uncomfortable, especially given the volatility in operating income. This leverage profile appears to be a structural constraint that may limit management's ability to pivot strategy or navigate a prolonged economic downturn without seeking additional, potentially dilutive, financing.
The P/E ratio is frequently misapplied to FWRG, as it obscures the significant impact of pre-opening expenses and non-cash charges that distort earnings, making the company appear less profitable than its underlying store-level cash flow generation would otherwise suggest to a fundamental analyst.
Investors should instead focus on store-level EBITDA and free cash flow metrics, which better capture the operational reality of the daytime-only model. Relying on P/E multiples in a high-growth, capital-intensive phase risks misinterpreting the company's true earning power and the sustainability of its current expansion trajectory.
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Quick answers to the most common questions about buying FWRG stock.
First Watch Restaurant Group, Inc.'s current P/E ratio is 41.5x. The historical average is 71.4x.
First Watch Restaurant Group, Inc.'s current EV/EBITDA is 13.9x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 21.0x.
First Watch Restaurant Group, Inc.'s return on equity (ROE) is 3.2%. The historical average is -2.4%.
Based on historical data, First Watch Restaurant Group, Inc. is trading at a P/E of 41.5x. Compare with industry peers and growth rates for a complete picture.
First Watch Restaurant Group, Inc. has 13.0% gross margin and 2.8% operating margin.
First Watch Restaurant Group, Inc.'s Debt/EBITDA ratio is 6.8x, indicating high leverage. A ratio above 4x may signal elevated financial risk.