Is DallasNews Corp. overvalued or undervalued?

As of 30 April 2025, the valuation grade for DallasNews Corp. has moved from expensive to very attractive, indicating a significant shift in its perceived value. The company is currently deemed undervalued based on its metrics. Key ratios include a P/E ratio of 0.82, an EV to EBIT of 2.34, and an impressive ROCE of 116.48%.
In comparison to its peers, DallasNews Corp. stands out with a much lower P/E ratio than Daily Journal Corp. at 22.13 and Gannett Co., Inc. at 8.87, both of which are in the same industry. The EV to EBITDA ratio for DallasNews is also more favorable compared to its peers, suggesting a more attractive valuation. Despite recent stock performance lagging behind the S&P 500, with a year-to-date return of -44.68% compared to the S&P 500's 2.44%, the underlying financial metrics support the conclusion that DallasNews Corp. is undervalued in the current market.