Is Canterbury Park Holding Corp. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Canterbury Park Holding Corp. has moved from attractive to fair, indicating a shift in its perceived investment quality. The company appears to be overvalued based on its high P/E ratio of 88 compared to peers like Marcus Corp., which has a more reasonable P/E of 21.71, and Golden Entertainment, Inc., at 37.80. Additionally, the EV to EBITDA ratio of 9.20 suggests that the company may not be generating sufficient earnings relative to its enterprise value, especially when compared to the industry average.
With a dividend yield of 157.07% and a ROCE of 5.75%, the company shows some positive aspects, but these are overshadowed by its high valuation ratios. The stock has underperformed significantly against the S&P 500, with a year-to-date return of -19.66% compared to the index's 13.30%, and a three-year return of -29.24% versus 81.19% for the S&P 500. This performance reinforces the view that Canterbury Park Holding Corp. is currently overvalued in the market.