Is Lionsgate Studios Holding Corp. overvalued or undervalued?

As of 9 August 2024, the valuation grade for Lionsgate Studios Holding Corp. has moved from does not qualify to risky, indicating a shift in perception regarding its investment potential. The company appears to be overvalued based on its current metrics, particularly with a P/E ratio of -18.13, which significantly deviates from the industry average, and an EV/EBITDA of 3.55, suggesting that investors are paying a premium relative to earnings before interest, taxes, depreciation, and amortization.
In comparison to its peers, Lionsgate's valuation ratios are concerning; for instance, its P/E ratio is notably lower than the industry average, reflecting potential challenges in profitability. Additionally, the company has no dividend yield, which may deter income-focused investors. Recent stock performance shows that over the past year, Lionsgate's return of 1.53% significantly lags behind the S&P 500's return of 17.14%, reinforcing the notion that the stock may not be a favorable investment at this time.