DENN
Denny's Corp
Price:  
4.23 
USD
Volume:  
1,583,299
United States | Hotels, Restaurants & Leisure

DENN Fair Value

98.4 %
Upside

What is the fair value of DENN?

As of 2025-07-10, the Fair Value of Denny's Corp (DENN) is 8.39 USD. This value is based on the Peter Lynch's Fair Value formula. With the current market price of 4.23 USD, the upside of Denny's Corp is 98.4%.

Is DENN a good investment?

With the market price of 4.23 USD and our fair value calculation, Denny's Corp (DENN) is a good investment. Investing in DENN stocks now will result in a potential gain of 98.4%.

4.23 USD
Stock Price
8.39 USD
Fair Price
FAIR VALUE CALCULATION

DENN Fair Value

Peter Lynch's formula is:

DENN Fair Value
= Earnings Growth Rate x TTM EPS
DENN Fair Value
= 25 x 0.34
DENN Fair Value
= 8.39

The earnings growth rate we use in the formula is the average growth rate of net income/earnings over the last 5 years. If the average growth rate is smaller than 5%, we set it to 5%. If it is larger than 25%, we set it to 25%. If the TTM EPS is negative, Peter Lynch Fair Value's result can be unreliable.

Historical Earnings
12-202012-202112-202212-202312-20245Y Avg
Net income-5.178.174.719.9521.5738
YoY growth-104.3%1631.4%-4.4%-73.3%8.2%291.5%

DENN Fair Value - Peers Benchmarking

Market Cap (mil)EPS Fair Value Upside
a
Biglari Holdings Inc93338.8193.78-35.7%
MTY Food Group Inc1,0020.49.39-78.5%
Ruth's Hospitality Group Inc6911.230.7743.2%
Chuy's Holdings Inc6461.639.044.2%
Nathan's Famous Inc4695.984.64-26.2%
Del Taco Restaurants Inc4540.62.95-71.3%
A and W Revenue Royalties Income Fund5392.217.69-52.1%
Potbelly Corp3851.435.63179.5%
El Pollo Loco Holdings Inc3380.84.2-62.6%
J Alexanders Holdings Inc2110.63.19-77.2%

DENN Fair Value - Key Data

Market Cap (mil)217
P/E12.6x
Forward P/E9.4x
EPS0.34
Avg earnings growth rate291.5%
TTM earnings17

DENN Fair Value - Formula's Origin

Peter Lynch is one of the most legendary investors/fund managers of all time. His philosophy for stock investing is very simple and straightforward: he invests in stocks that are undervalued, meaning its P/E is less than or equal to its earnings growth rate. He believes that if a stock is trading at its fair value, the PEG ratio, which was also invented by him, should be 1.

Therefore, his formula to determine a company's fair value is:

Peter Lynch Fair Value = Earnings Growth Rate * EPS * PEG

PEG is set to 1 so we can ignore it in the calculation. Based on the formula, if the earnings growth rate of a company is 15%, Peter Lynch is willing to buy its share up to P/E = 15.