Is Reading International, Inc. overvalued or undervalued?

As of 10 May 2022, the valuation grade for Reading International, Inc. has moved from attractive to risky, indicating a shift in perception regarding its investment potential. The company appears to be overvalued given its negative valuation ratios, including a Price to Book Value of -7.86 and an EV to EBIT of -19.92, which suggest significant financial distress. Additionally, its EV to EBITDA ratio stands at 15.41, which is relatively high compared to peers.
In comparison to its peers, Reading International, Inc. has a P/E ratio of -4.2344, while Marcus Corp. shows a more favorable P/E of 21.7073, and Golden Entertainment, Inc. is deemed expensive with a P/E of 37.8019. The company's recent stock performance has been mixed; it outperformed the S&P 500 in the short term with a 1-month return of 10.00% versus 2.33%, but it has significantly underperformed over longer periods, including a 1-year return of -13.48% compared to the S&P 500's 17.14%. This suggests that despite some short-term gains, the overall outlook for Reading International, Inc. remains concerning.