Is Nexstar Media Group, Inc. overvalued or undervalued?

As of 8 May 2025, Nexstar Media Group, Inc. has moved from a fair to an expensive valuation grade. The company is currently overvalued based on its financial metrics. Key ratios include a P/E ratio of 10, a Price to Book Value of 2.72, and an EV to EBITDA of 6.03, which are relatively high compared to its peers. For instance, Fox Corp. has a P/E of 11.69 and an EV to EBITDA of 7.46, while Paramount Global shows a P/E of 12.77 and an EV to EBITDA of 9.35, indicating that Nexstar's valuation is not justified when compared to these competitors.
Additionally, while Nexstar has a robust ROE of 27.78% and a PEG ratio of 0.12, suggesting some growth potential, the overall valuation still appears excessive in the current market context. Despite recent stock performance showing a 10.53% YTD return compared to the S&P 500's 2.44%, the high valuation metrics suggest that investors may be overestimating the company's future growth prospects.