Is Cumulus Media, Inc. overvalued or undervalued?

As of 27 April 2023, the valuation grade for Cumulus Media, Inc. has moved from fair to risky, indicating a deteriorating outlook. The company is overvalued, particularly given its negative Price to Book Value of -0.60 and an extraordinarily high EV to EBIT ratio of 655.70. Additionally, the EV to EBITDA ratio stands at 9.94, which is significantly higher than peers like Sinclair, Inc. with an EV to EBITDA of 5.64 and Gray Television, Inc. at 5.94, both of which are classified as very attractive.
The stock has underperformed significantly compared to the S&P 500, with a year-to-date return of -78.66% versus the index's 12.22%, and a staggering -90.34% over the past year compared to the S&P 500's 17.14%. This stark contrast reinforces the notion that Cumulus Media, Inc. is not only overvalued but also struggling to maintain investor confidence in the current market environment.