Is Golden Entertainment, Inc. overvalued or undervalued?

As of 8 May 2025, the valuation grade for Golden Entertainment, Inc. has moved from fair to expensive, indicating a shift towards overvaluation. The company is currently deemed overvalued based on its P/E ratio of 41, which is significantly higher than the industry average, and an EV to EBITDA ratio of 23.40, also above the peer average. The return on equity (ROE) stands at a low 3.78%, further supporting the notion of overvaluation.
In comparison with peers, Golden Entertainment's P/E ratio of 41 contrasts sharply with AMC Entertainment Holdings, Inc., which has a negative P/E of -2.76, highlighting the disparity in valuation metrics. Additionally, Golden's EV to EBITDA ratio of 23.40 is higher than AMC's 19.97, suggesting that investors are paying a premium for Golden's earnings potential. Despite a recent stock return of 7.64% over the past week, which outperformed the S&P 500, the overall valuation suggests that Golden Entertainment, Inc. is overvalued in the current market environment.