Is Cable One, Inc. overvalued or undervalued?

As of 1 May 2025, the valuation grade for Cable One, Inc. has moved from expensive to risky, indicating a shift in perception regarding its market position. The company appears to be overvalued, given its P/E ratio of 5, which is significantly lower than peers like Liberty Global Plc with a P/E of -0.39 and IDT Corp. at 17.83, suggesting a relative undervaluation in the sector. Additionally, Cable One's price-to-book value stands at 0.44, and its EV to EBITDA ratio is 5.33, both of which further highlight its challenging valuation landscape.
The company's recent stock performance has been poor, with a year-to-date return of -53.15% compared to the S&P 500's 12.22%, and a staggering -90.21% decline over the past five years against the S&P's 96.61% gain. This stark contrast reinforces the notion that Cable One, Inc. is currently overvalued in the market.