Is Cinemark Holdings, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Cinemark Holdings, Inc. moved from expensive to very attractive, indicating a significant improvement in its valuation outlook. The company is currently considered undervalued, with a P/E ratio of 16, an EV to EBITDA of 11.04, and a PEG ratio of 1.51, all of which suggest favorable pricing relative to its earnings and growth potential.
In comparison to peers, Cinemark's P/E ratio of 11.14 is notably lower than Churchill Downs, Inc.'s 16.46, while its EV to EBITDA is also more attractive than Churchill's 12.60. Additionally, Cinemark's ROE of 71.30% stands out, indicating strong profitability relative to its equity. Despite a challenging year-to-date return of -14.59% compared to the S&P 500's 13.30%, the company's impressive 3-year return of 173.91% suggests strong long-term performance potential.