Is AMC Entertainment Holdings, Inc. overvalued or undervalued?

As of 27 February 2020, the valuation grade for AMC Entertainment Holdings, Inc. has moved from very attractive to risky. This significant downgrade indicates that the company is currently overvalued. Key ratios highlight the financial distress, with a Price to Book Value of -0.85, an EV to EBIT of -136.08, and an EV to EBITDA of 20.61, which suggests that the company's operational performance is severely lacking.
In comparison to its peers, AMC's valuation metrics are concerning, particularly with a peer average EV to EBITDA around 20, which underscores its struggles. Notably, the company has also experienced substantial declines in stock performance, with a year-to-date return of -24.87%, contrasting sharply with the S&P 500's positive return of 2.44% in the same period. Overall, these indicators suggest that AMC Entertainment is not only overvalued but also facing significant operational challenges.