Is Daily Journal Corp. overvalued or undervalued?

As of 14 August 2025, the valuation grade for Daily Journal Corp. has moved from very attractive to attractive, indicating a slight decrease in perceived value. The company appears to be overvalued, particularly when considering its P/E ratio of 24, which is higher than the peer average of approximately 25.54, and an EV to EBITDA ratio of 71.18, which suggests a premium valuation compared to its peers. Additionally, the PEG ratio stands at 0.53, indicating potential growth relative to its price, but the high EV to EBIT ratio of 75.36 raises concerns about profitability.
In comparison to its peers, Gannett Co., Inc. has a significantly lower P/E ratio of 5.36, while DallasNews Corp. and Lee Enterprises, Inc. show negative earnings, reflecting the challenges in the media sector. Daily Journal Corp.'s recent stock performance has been underwhelming, with a year-to-date return of -21.69% compared to the S&P 500's positive return of 12.22%, further supporting the view that the stock may be overvalued in the current market environment.