Is Everi Holdings, Inc. overvalued or undervalued?

As of 8 July 2024, the valuation grade for Everi Holdings, Inc. has moved from expensive to very expensive, indicating a significant concern regarding its valuation. The company appears overvalued based on its current metrics, with a P/E ratio of 43, a Price to Book Value of 6.04, and an EV to EBIT of 16.52. In comparison, a peer such as Everi Holdings has a P/E of 32.9955 and an EV to EBITDA of 5.437, suggesting that Everi is trading at a premium relative to its peers in the Leisure Services industry.
Recent performance shows that while Everi Holdings has delivered a 75.15% return over the past year, this is notably higher than the S&P 500's 17.14% return, which may reinforce the perception of overvaluation given the disparity in growth against the broader market. Overall, the high valuation ratios and the recent grade change suggest that Everi Holdings, Inc. is currently overvalued.