Is Churchill Downs, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Churchill Downs, Inc. has moved from very expensive to fair. Based on the current metrics, the company appears to be fairly valued. Key ratios include a P/E ratio of 17, an EV to EBITDA of 12.68, and a PEG ratio of 1.24, which suggests that the stock is reasonably priced relative to its earnings growth potential.
In comparison to its peers, Churchill Downs, Inc. has a P/E ratio of 16.46, which is more attractive than Madison Square Garden Sports Corp.'s risky valuation with a P/E of -390.17, and also better than Cinemark Holdings, Inc.'s very attractive P/E of 11.14. Notably, Churchill Downs has underperformed against the S&P 500, with a year-to-date return of -32.21% compared to the index's 13.30%, indicating potential concerns about its future performance despite its fair valuation.