Is AMC Networks, Inc. overvalued or undervalued?

As of 14 February 2025, the valuation grade for AMC Networks, Inc. has moved from fair to risky, indicating a shift towards a more negative outlook. The company appears to be overvalued based on its P/E ratio of 2, which is significantly lower than the peer average of 3.23, and an EV to EBITDA ratio of 1.46 compared to the industry standard. Additionally, the Price to Book Value stands at 0.58, suggesting that the stock is trading below its book value, but this does not offset the overall valuation concerns.
In comparison with peers, AMC Networks, Inc. shows a lower P/E ratio and a higher EV to EBITDA ratio, which highlights its relative weakness in profitability metrics. The company's recent stock performance has been poor, with a YTD return of -15.45% compared to the S&P 500's positive return of 12.22%, and a staggering 5-year return of -66.49% against the S&P 500's 96.61%. This further reinforces the notion that AMC Networks, Inc. is currently overvalued in the market.