Is Cedar Fair LP overvalued or undervalued?

As of 27 February 2025, the valuation grade for Cedar Fair LP has moved from very expensive to risky, indicating a significant shift in its financial outlook. The company appears to be overvalued based on its current metrics, particularly given its negative P/E ratio of -22.66 and a high EV to EBITDA ratio of 11.89. Additionally, the return on equity (ROE) is notably poor at -7.07%, suggesting inefficiencies in generating profit from equity investments.
In comparison to its peers, Cedar Fair LP's valuation metrics stand out unfavorably. For instance, Cinemark Holdings, Inc. has a fair valuation with a P/E of 15.68 and an EV to EBITDA of 11.12, while Six Flags Entertainment Corp. is also in the risky category with an EV to EBITDA of 12.06. This comparison reinforces the notion that Cedar Fair LP is overvalued in its current state. Furthermore, its stock performance has lagged significantly behind the S&P 500, with a year-to-date decline of 36.73% compared to a modest gain of 2.44% for the index, further supporting the assessment of overvaluation.