Is Century Casinos, Inc. overvalued or undervalued?

As of 8 August 2023, the valuation grade for Century Casinos, Inc. has moved from expensive to risky, indicating a shift in perception regarding its valuation. The company appears to be overvalued, particularly given its negative price-to-book value of -2.11 and a relatively high EV to EBIT ratio of 5.32. Additionally, the EV to EBITDA ratio stands at 2.69, which reflects a concerning valuation relative to its earnings potential.
In comparison to its peers, Century Casinos, Inc. has a worse EV to EBITDA ratio than Bally's Corp., which has a ratio of 16.35, highlighting its relative underperformance. The company's recent stock performance shows a 1-week return of 5.51% compared to the S&P 500's 1.05%, but it has significantly underperformed over longer periods, with a year-to-date return of -17.28% versus the S&P 500's 12.22%. This performance reinforces the notion that Century Casinos, Inc. is currently overvalued in the market.