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. Based on the metrics available, the company appears to be undervalued. Key ratios include a P/E ratio of 16, an EV to EBITDA of 11.04, and a PEG ratio of 1.51, which suggest that the stock is trading at a discount relative to its earnings growth potential.
In comparison to its peers, Cinemark's P/E ratio of 11.14 is notably lower than Churchill Downs, Inc. at 16.46, and its EV to EBITDA of 8.09 is also more favorable compared to the same peer. Despite recent challenges reflected in the YTD return of -14.59 versus the S&P 500's 13.30, Cinemark has shown strong long-term performance with a 3Y return of 173.91%, significantly outpacing the S&P 500's 81.19%. This suggests that while short-term volatility exists, the long-term value proposition remains compelling.