What is The Cheesecake Factory Incorporated (CAKE)'s PEG ratio?

The Cheesecake Factory Incorporated (CAKE) has a PEG ratio of 0.40 (Potentially Undervalued), based on a PE ratio of 21.5 and expected EPS growth of 53.9% (3-Year EPS CAGR).

Is CAKE undervalued based on its PEG ratio?

A PEG below 1.0 is conventionally read as potentially undervalued, 1.0–2.0 as fairly valued, and above 2.0 as potentially overvalued relative to growth. At 0.40, The Cheesecake Factory Incorporated (CAKE) screens as "Potentially Undervalued". PEG is one signal, not investment advice — see the full DCF fair value at evidinvest.com/valuation/CAKE.

The Cheesecake Factory Incorporated (CAKE) PEG Ratio

Potentially Undervalued

PE ratio relative to earnings growth — is the valuation justified?

0.40

PEG Ratio

0.40

Growth Rate Source

Limited Data Quality3-Year EPS CAGR

Current Price

$79.18

TTM EPS

$3.69

P/E Ratio

21.46

Growth Rate

53.9%

3-Year EPS CAGR

Sector

Consumer Cyclical

Restaurants

Calculated

8/18/2026

10:06:05 AM

Peer Comparison

Sample Size

4 peers

Industry Median PEG

0.38

25th Percentile

0.37

75th Percentile

3.10

CAKE PEG (0.40) vs Industry Median (0.38): 4% premium

Symbol	Company	PEG	P/E	Growth	vs CAKE
BJRI	BJ's Restaurants, Inc.	0.23	31.1	135.5%	-42%
EAT	Brinker International, Inc.	0.37	12.3	33.5%	-8%
TXRH	Texas Roadhouse, Inc.	0.40	27.3	68.5%	-0%
DRI	Darden Restaurants, Inc.	3.10	21.7	7.0%	+679%

How to Interpret PEG Ratio

PEG < 1.0 — Potentially Undervalued. The stock may be priced below its earnings growth rate, suggesting a potential buying opportunity.

PEG 1.0–2.0 — Fairly Valued. The stock price is roughly in line with its earnings growth. A PEG of 1.0 is often considered "fair value."

PEG > 2.0 — Potentially Overvalued. The stock may be priced above what its earnings growth justifies.

Limitations:PEG ratios are less reliable for financial firms (earnings driven by interest margins), companies with negative/zero earnings growth, and hypergrowth companies (>100% growth) where the ratio may appear misleadingly low. Always use PEG alongside other valuation metrics.

The Cheesecake Factory Incorporated (CAKE) PEG Ratio

Peer Comparison

How to Interpret PEG Ratio

More on CAKE

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The Cheesecake Factory Incorporated (CAKE) PEG Ratio

Peer Comparison

How to Interpret PEG Ratio

More on CAKE

Compare with peers

Explore