Is Gannett Co., Inc. overvalued or undervalued?

As of 1 May 2025, Gannett Co., Inc. has moved from a valuation grade of risky to very attractive, indicating a significant improvement in its perceived value. The company is currently considered undervalued. Key ratios include a P/E ratio of 9, an EV to EBITDA of 6.85, and a PEG ratio of 0.04, all suggesting that the stock is priced favorably compared to its earnings growth potential.
In comparison to its peers, Gannett's P/E ratio of 8.87 is notably lower than that of Daily Journal Corp., which stands at 22.13, and its EV to EBITDA is also more favorable than the industry average. Despite recent underperformance relative to the S&P 500, particularly over the past year with a decline of 25.34% compared to the index's gain of 10.26%, the current valuation metrics suggest that Gannett Co., Inc. presents a compelling investment opportunity at its current price of 3.30.