Is IMAX Corp. overvalued or undervalued?

As of 30 June 2025, IMAX Corp. has moved from expensive to very expensive, indicating a significant shift in its valuation outlook. The company appears overvalued, with a P/E ratio of 36, which is notably higher than its peer Roku, Inc. at 34.92 and Whirlpool Corp. at 37.42. Additionally, IMAX's EV to EBITDA stands at 13.45, while its PEG ratio is 1.96, suggesting that the stock may not be justified at its current price given its growth prospects.
In comparison to its peers, IMAX's valuation metrics reflect a premium positioning, particularly when considering the EV to EBIT ratio of 28.34, which is higher than the industry average. The recent stock performance shows that IMAX has outperformed the S&P 500 over multiple periods, including a 59.01% return over the past year compared to the S&P 500's 17.14%. This strong performance may attract investors, but the elevated valuation ratios suggest caution moving forward.