Is Full House Resorts, Inc. overvalued or undervalued?

As of 8 November 2022, the valuation grade for Full House Resorts, Inc. moved from expensive to risky, indicating a deterioration in its valuation outlook. The company appears to be overvalued given its current metrics, particularly with a Price to Book Value of 3.76 and an EV to EBITDA ratio of 12.30, which are significantly higher than its peers. Additionally, the company’s ROE stands at a concerning -124.70%, reflecting poor profitability relative to shareholder equity.
In comparison to its peers, Bally's Corp. has an EV to EBITDA of 16.35, while Century Casinos, Inc. shows a much lower ratio of 2.76, highlighting Full House's relative overvaluation. The stock has underperformed against the S&P 500 across multiple periods, notably with a year-to-date return of -14.46% compared to the S&P 500's 12.22%, reinforcing the notion that the stock is struggling in the current market environment.