Is Marcus Corp. overvalued or undervalued?

As of 1 August 2024, the valuation grade for Marcus Corp. has moved from fair to risky, indicating a shift in perception regarding its financial health. The company is currently considered overvalued, with a P/E ratio of 58, significantly higher than peers such as Accel Entertainment, Inc. at 22.72 and AMC Entertainment Holdings, Inc. at -2.76. Additionally, Marcus Corp. has an EV to EBITDA ratio of 29.31, which is elevated compared to the industry average, suggesting that investors are paying a premium for its earnings potential.
In terms of financial performance, Marcus Corp. shows a ROCE of 4.21% and a ROE of 2.11%, both of which are relatively low and suggest inefficiencies in generating returns for shareholders. The company's dividend yield stands at 1.95%, which may not be attractive enough to offset the risks associated with its high valuation metrics. Recent stock performance indicates that while Marcus Corp. has outperformed the S&P 500 over the past year with a return of 56.36%, its year-to-date performance is concerning at -20.0%, further supporting the view that the stock is currently overvalued.