Is Cumulus Media, Inc. overvalued or undervalued?

As of 27 April 2023, the valuation grade for Cumulus Media, Inc. has moved from expensive to risky, indicating a significant shift in its financial outlook. The company is currently assessed as overvalued, particularly given its negative price-to-earnings ratio and a price-to-book value of -0.60. Key ratios include an EV to EBITDA of 9.94 and an EV to sales ratio of 0.81, which further emphasize the challenges the company faces in generating positive returns.
In comparison to its peers, Cumulus Media's valuation metrics are notably weaker. For instance, Sinclair, Inc. has a P/E ratio of 2.93 and an EV to EBITDA of 5.37, while Gray Television, Inc. shows a P/E of 2.05 and an EV to EBITDA of 5.41, both indicating a more favorable valuation. Additionally, Cumulus Media's recent stock performance has been dismal, with a year-to-date decline of 83.07% compared to a modest 2.44% gain in the S&P 500, reinforcing the perception of overvaluation in light of its financial struggles.