Is International Game Technology PLC overvalued or undervalued?

As of 29 July 2025, the valuation grade for International Game Technology PLC has moved from fair to risky, indicating a shift in perception regarding its investment potential. The company appears to be overvalued based on its current metrics, with a P/E ratio of 14, a Price to Book Value of 1.80, and an EV to EBITDA of 6.53, which are not competitive compared to its peers. For instance, MGM Resorts International has a much lower P/E ratio of 11.74 and an EV to EBITDA of 5.95, suggesting that International Game Technology PLC is trading at a premium relative to some of its competitors.
In terms of recent performance, the company's stock has underperformed against the S&P 500, with a year-to-date return of -5.61% compared to the index's 12.22%. Over the past year, the stock has declined by 23.92%, while the S&P 500 has gained 17.14%. This significant underperformance reinforces the notion that International Game Technology PLC is overvalued in the current market environment.