Is Allied Gaming & Entertainment, Inc. overvalued or undervalued?
As of November 12, 2019, Allied Gaming & Entertainment, Inc. is considered risky and overvalued, with significant operational challenges reflected in its negative EV to EBITDA and poor ROCE and ROE, despite a strong year-to-date return.
As of 12 November 2019, the valuation grade for Allied Gaming & Entertainment, Inc. moved from does not qualify to risky. Based on the analysis, the company appears to be overvalued. The P/E ratio is not applicable due to losses, while the Price to Book Value stands at 1.80, and the EV to EBITDA is -10.07, indicating significant operational challenges.In comparison to peers, Allied Gaming's EV to EBITDA is worse than that of Marcus Corp., which has a positive EV to EBITDA of 5.8585, and CuriosityStream, Inc., which also shows a negative ratio of -32.3556. Additionally, the company's ROCE is at a concerning -31.50%, and its ROE is -10.57%. Despite a strong year-to-date return of 265.93% compared to the S&P 500's 2.44%, the underlying financial metrics suggest that the current valuation is not justified given the company's performance and peer comparisons.
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