Is Entravision Communications Corp. overvalued or undervalued?

As of 5 March 2024, the valuation grade for Entravision Communications Corp. has moved from expensive to risky, indicating a shift in perception regarding its financial health. The company appears to be overvalued, particularly when considering its Price to Book Value of 1.98, EV to EBIT of 23.43, and EV to Sales of 0.81, which suggest that the market may be pricing in more value than the company's financial performance justifies.
In comparison to its peers, Entravision's valuation metrics are less favorable; for instance, Sinclair, Inc. has a much lower EV to EBITDA of 5.6434, while Gray Television, Inc. stands at 5.9429, both indicating more attractive valuations in the industry. Additionally, despite a strong 1-year stock return of 26.13% compared to the S&P 500's 17.14%, the significant 3-year decline of -45.91% against the S&P 500's 70.41% suggests that the stock may not sustain its current price levels.