Is Light & Wonder, Inc. overvalued or undervalued?

As of 7 May 2025, the valuation grade for Light & Wonder, Inc. has moved from expensive to very expensive, indicating a significant shift in its perceived value. The company is currently deemed overvalued. Key ratios include a P/E ratio of 21, an EV to EBITDA of 10.90, and a PEG ratio of 0.42, which suggests that while growth expectations may be high, the current price does not justify the valuation.
In comparison to its peers, Light & Wonder, Inc. has a higher P/E ratio than Wynn Resorts Ltd., which stands at 20.48, and is also more expensive than MGM Resorts International, which has a P/E of 8.87. The disparity in valuations raises concerns about the sustainability of its current price level. Additionally, the company's recent stock performance has lagged behind the S&P 500, with a year-to-date return of -4.31% compared to the index's 2.44%, further reinforcing the notion that it may be overvalued.