Is Golden Entertainment, Inc. overvalued or undervalued?

As of 22 August 2025, the valuation grade for Golden Entertainment, Inc. has moved from attractive to expensive, indicating a shift towards overvaluation. The company appears overvalued based on its current metrics, with a P/E ratio of 41, significantly higher than its peer average of approximately 37.80. Additionally, the EV to EBITDA ratio stands at 7.92, which is also above the industry norm, suggesting that investors are paying a premium for earnings before interest, taxes, depreciation, and amortization.
In comparison to its peers, Golden Entertainment's ROE of 3.78% and ROCE of 5.58% are relatively low, further supporting the notion of overvaluation. The company's recent stock performance has been underwhelming, with a year-to-date return of -22.06%, compared to a positive 12.22% return for the S&P 500, highlighting the challenges it faces in the current market environment. Overall, the combination of high valuation ratios and poor relative performance suggests that Golden Entertainment, Inc. is overvalued.