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 based on its current metrics, particularly with a P/E ratio of 13, which is significantly higher than its peer Fox Corp. at 12.23, and an EV to EBITDA ratio of 9.33 compared to Fox's 7.69. Additionally, the PEG ratio stands at a low 0.04, suggesting that the stock may not be a good growth investment relative to its price.
In comparison to the S&P 500, Paramount Global has shown strong short-term performance, with a year-to-date return of 70.89% versus the index's 12.22%. However, over longer periods, such as the 3-year and 5-year returns of -21.36% and -40.73%, respectively, the stock has significantly underperformed. This mixed performance, alongside its current valuation ratios, reinforces the conclusion that Paramount Global is currently overvalued.