Is National CineMedia, Inc. overvalued or undervalued?

As of 5 November 2024, the valuation grade for National CineMedia, Inc. has moved from attractive to risky. The company is currently overvalued based on its financial metrics and peer comparisons. Key ratios include a Price to Book Value of 1.32, an EV to EBITDA of 19.83, and a Dividend Yield of 16.96%. Notably, the company has a negative P/E ratio due to losses, which further underscores its financial challenges.
In comparison to peers, National CineMedia's EV to EBITDA ratio of 19.83 is significantly higher than that of Clear Channel Outdoor Holdings, Inc. at 11.96 and Thryv Holdings, Inc. at 11.78, indicating a premium valuation despite its risky outlook. Additionally, the company's recent stock performance has been underwhelming, with a year-to-date return of -21.23%, contrasting sharply with the S&P 500's positive return of 2.44% during the same period. This further reinforces the assessment that National CineMedia is overvalued in the current market context.