Is Churchill Downs, Inc. overvalued or undervalued?

As of 6 August 2025, the valuation grade for Churchill Downs, Inc. has moved from attractive to fair, indicating a shift in its perceived value. The company appears to be fairly valued at this time. Key valuation ratios include a P/E ratio of 17, an EV to EBITDA of 12.68, and a PEG ratio of 1.24, which suggest that while the company is not undervalued, it is also not significantly overvalued compared to its peers.
In comparison to its peers, Churchill Downs, Inc. has a P/E ratio of 16.46, which is higher than Cinemark Holdings, Inc. at 11.14, indicating that it is priced at a premium relative to that competitor. However, it is lower than some other peers like United Parks & Resorts, Inc. with a P/E of 18.13. The recent stock performance shows that Churchill Downs has underperformed against the S&P 500 across multiple time frames, with a year-to-date return of -27.82% compared to the S&P 500's 12.22%, reinforcing the notion that the stock may be fairly valued given its recent struggles.