Is Caesars Entertainment, Inc. overvalued or undervalued?

As of 30 July 2024, Caesars Entertainment, Inc. has moved from a very attractive to a risky valuation grade. The company is currently considered overvalued, particularly given its P/E ratio is not applicable due to losses, while its Price to Book Value stands at 1.32, and its EV to EBITDA is at 4.56. Additionally, the company has a ROCE of 14.94%, but a concerning ROE of -2.48%, indicating inefficiencies in generating returns for shareholders.
In comparison to its peers, Caesars' valuation metrics are significantly weaker. For instance, Wynn Resorts Ltd. has a P/E of 20.48 and an EV to EBITDA of 11.23, while Boyd Gaming Corp. boasts a P/E of 10.64 and an EV to EBITDA of 7.71, both highlighting a more favorable valuation than Caesars. The company's recent stock performance has also lagged behind the S&P 500, with a year-to-date return of -14.72% compared to the index's 2.44%, reinforcing the notion of overvaluation amidst a challenging market environment.