Is Churchill Downs, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Churchill Downs, Inc. moved from very expensive to fair. The company appears fairly valued based on its current metrics. Key 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 the stock is reasonably priced compared to its earnings growth potential.
In comparison to peers, Churchill Downs has a P/E ratio of 16.46, which is more favorable than Madison Square Garden Sports Corp. with a risky P/E of -390.17, but less attractive than Cinemark Holdings, Inc. at 11.14. The recent stock performance shows that Churchill Downs has underperformed against the S&P 500, with a year-to-date return of -32.21% compared to the S&P 500's 13.30%, indicating a challenging market environment for the company.