Is Golden Entertainment, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Golden Entertainment, Inc. has moved from fair to expensive, indicating that the stock is overvalued. The company exhibits a P/E ratio of 41, which is significantly higher than its peer average of approximately 37.80, suggesting that investors are paying a premium for its earnings. Additionally, the EV to EBITDA ratio stands at 7.92, which is comparable to the industry but still reflects a high valuation relative to its earnings potential.
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 performance shows a stark contrast to the S&P 500, with a year-to-date return of -28.67% compared to the index's 13.30%, highlighting the challenges the company faces in delivering shareholder value. Overall, Golden Entertainment appears to be overvalued based on its current financial metrics and peer comparisons.