Is National CineMedia, Inc. overvalued or undervalued?

As of 5 November 2024, the valuation grade for National CineMedia, Inc. has moved from expensive to risky, indicating a deterioration in its perceived value. The company appears to be overvalued given its financial metrics, particularly with a Price to Book Value of 1.32 and an EV to EBITDA ratio of 19.83, which is significantly higher than its peers. Additionally, the company's negative ROCE of -6.69% and ROE of -5.01% further highlight its struggles in generating returns for shareholders.
In comparison to its peers, National CineMedia, Inc. has a notably high EV to EBITDA ratio of 19.83, while Clear Channel Outdoor Holdings, Inc. stands at 12.71, and Advantage Solutions, Inc. at 9.01, both indicating more favorable valuations. The company's recent stock performance has been poor, with a year-to-date return of -26.96%, significantly underperforming the S&P 500's return of 12.22% during the same period, reinforcing the notion that the stock is overvalued in the current market context.