Is AMC Networks, Inc. overvalued or undervalued?

As of 14 February 2025, the valuation grade for AMC Networks, Inc. has moved from attractive to risky, indicating a significant shift in perception regarding the company's financial health and market position. The company is currently considered overvalued. Key ratios reveal a P/E ratio of 2, an EV to EBIT of 5.17, and an EV to EBITDA of 1.46, which are notably low compared to industry standards.
When comparing AMC Networks to peers, it is evident that the company is lagging, with its P/E ratio of 2.22 and EV to EBITDA of 1.44 indicating a lack of investor confidence relative to competitors. The company's recent performance has been disappointing, with a year-to-date return of -36.67%, contrasting sharply with the S&P 500's positive return of 2.44% over the same period. This further emphasizes the overvaluation concern, as the market appears to be pricing in risks that may not be justified by the company's fundamentals.