Is Monarch Casino & Resort, Inc. overvalued or undervalued?
As of April 22, 2025, Monarch Casino & Resort, Inc. is considered fairly valued with a P/E ratio of 17 and an EV to EBITDA of 8.73, indicating a premium compared to competitors like Target Hospitality Corp., despite strong performance metrics and a 1-year stock return of 26.26% outpacing the S&P 500's 10.26%.
As of 22 April 2025, the valuation grade for Monarch Casino & Resort, Inc. has moved from very attractive to attractive, indicating a shift in perception regarding its investment potential. The company appears to be fairly valued at this time. Key ratios include a P/E ratio of 17, an EV to EBITDA of 8.73, and a PEG ratio of 1.16, suggesting that while the company is performing well, it may not present a significant discount compared to its peers.In comparison to Target Hospitality Corp., which has a P/E of 15.25 and an EV to EBITDA of 4.80, Monarch's valuation metrics indicate a premium. This suggests that while Monarch Casino is performing strongly with a ROCE of 26.57% and a ROE of 17.96%, it is priced higher than some of its competitors. Additionally, the company's recent stock performance has outpaced the S&P 500, with a 1-year return of 26.26% compared to the S&P 500's 10.26%, reinforcing the notion that the stock is currently fairly valued.
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