Is Light & Wonder, Inc. overvalued or undervalued?

As of 6 August 2025, the valuation grade for Light & Wonder, Inc. has moved from very expensive to expensive, indicating a shift towards a less favorable valuation. The company appears to be overvalued based on its current metrics, with a P/E ratio of 21, a Price to Book Value of 14.23, and an EV to EBITDA of 10.90. In comparison to peers, Wynn Resorts Ltd. has a significantly higher P/E ratio of 31.93, while MGM Resorts International shows a more attractive P/E of 11.74, highlighting the relative expense of Light & Wonder.
The stock has underperformed against the S&P 500 over the past year, with a return of -21.71% compared to the index's 17.14%, which reinforces the notion of overvaluation. Overall, the combination of high valuation ratios and poor recent performance suggests that Light & Wonder, Inc. is currently overvalued in the market.