Is Paramount Global overvalued or undervalued?

As of 4 May 2023, the valuation grade for Paramount Global has moved from very attractive to risky, indicating a shift in perception regarding its investment potential. The company appears to be overvalued, particularly when considering its P/E ratio of 13, which is higher than the industry average of approximately 12.77, and an EV to EBITDA ratio of 9.33, which is also above the peer average. Additionally, the PEG ratio stands at a notably low 0.04, suggesting that the stock may not be adequately priced relative to its growth potential.
In comparison to its peers, Fox Corp. is deemed very expensive with a P/E of 11.69, while Sirius XM Holdings, Inc. is classified as risky with a P/E of 5.63. The return metrics further highlight the volatility of Paramount Global, as it has underperformed the S&P 500 over longer periods, including a 3-year return of -49.76% compared to the S&P's 58.74%. Overall, these factors suggest that investors should approach Paramount Global with caution, as its current valuation does not reflect a favorable investment opportunity.