Is Cable One, Inc. overvalued or undervalued?

As of 1 May 2025, the valuation grade for Cable One, Inc. has moved from fair to risky, indicating a significant shift in the company's perceived value. The company is currently overvalued, as evidenced by its P/E ratio of 4.47, which is notably lower than the industry average, suggesting that investors are not willing to pay much for its earnings. Additionally, the EV to EBITDA ratio stands at 5.33, which also reflects a concerning valuation compared to peers like Liberty Global Plc, which has a lower EV to EBITDA of 4.45.
Further analysis reveals a Price to Book Value of 0.44 and a high dividend yield of 635.91%, which may attract some investors but also raises questions about sustainability given the company's recent performance. The return metrics are alarming, with Cable One, Inc. showing a year-to-date decline of 64.79% compared to a modest gain of 2.44% for the S&P 500, reinforcing the notion that the stock is overvalued in its current state.