Is Saga Communications, Inc. overvalued or undervalued?

As of 8 August 2024, the valuation grade for Saga Communications, Inc. moved from expensive to very attractive, indicating a significant improvement in its perceived value. The company is currently considered undervalued, with a P/E ratio of 31, a Price to Book Value of 0.64, and an EV to EBITDA of 10.74. In comparison, Sinclair, Inc. has a P/E of 6.25, and Gray Television, Inc. has a P/E of 3.83, highlighting that Saga's valuation metrics are more favorable than its peers.
Despite the attractive valuation, Saga Communications has faced challenges in stock performance, with a 1-year return of -15.38% compared to the S&P 500's 17.14%, and a staggering -51.63% return over the past three years against the S&P 500's 70.41%. This suggests that while the company may be undervalued based on its financial ratios, it has struggled to deliver returns in line with broader market performance.