Is DallasNews Corp. overvalued or undervalued?

As of 30 July 2025, the valuation grade for DallasNews Corp. has moved from very attractive to risky, indicating a shift in perception regarding its investment potential. The company appears to be overvalued, given its P/E ratio of 1, which is significantly lower than the industry average, and an EV to EBITDA ratio of 2.97, suggesting that the market may not be pricing in its potential effectively. Additionally, the Price to Book Value stands at 0.69, further supporting the notion that the stock may be overpriced relative to its assets.
In comparison to its peers, DallasNews Corp. has a notably negative P/E ratio of -16.71, while Gannett Co., Inc. is rated very attractive with a P/E of 5.36, and Daily Journal Corp. shows a strong P/E of 25.54. This stark contrast highlights the challenges DallasNews Corp. faces in the current market environment. Despite its recent stock performance, which has outpaced the S&P 500 with a YTD return of 106.86% compared to the index's 12.22%, the overall valuation metrics suggest that the stock may not sustain this momentum in the long term.