Is Salem Media Group, Inc. overvalued or undervalued?

As of 28 May 2025, the valuation grade for Salem Media Group, Inc. has moved from attractive to very attractive. The company appears to be undervalued given its current metrics, particularly with a price-to-book value of 0.15 and an EV to sales ratio of 0.61. Despite being loss-making, the EV to EBITDA stands at a high 141.25, indicating significant operational challenges.
In comparison to peers, Salem Media Group's EV to EBIT ratio is -12.40, while Sinclair, Inc. shows a more favorable EV to EBITDA of 5.3656, and Gray Television, Inc. has an EV to EBITDA of 5.4118. These ratios highlight the disparity in operational efficiency among competitors. Notably, Salem's stock has significantly outperformed the S&P 500 over the past year, with a return of 230.24% compared to the S&P 500's 10.26%, reinforcing the notion that the stock may be undervalued in the current market context.