Is Salem Media Group, Inc. overvalued or undervalued?

As of 27 June 2025, the valuation grade for Salem Media Group, Inc. has moved from very attractive to attractive. The company appears to be overvalued given its financial metrics. The Price to Book Value stands at 0.15, while the EV to EBITDA is significantly high at 141.25, indicating potential inefficiencies in generating earnings relative to its enterprise value. Additionally, the ROCE and ROE are both negative at -3.85% and -3.61%, respectively, which raises concerns about the company's profitability.
In comparison to its peers, Salem Media Group's EV to EBITDA ratio is substantially higher than that of Sinclair, Inc. at 5.37 and Gray Television, Inc. at 5.41, both of which are performing better in terms of valuation metrics. The company's recent stock performance has shown a significant return of 264.93% over the past year, yet this contrasts sharply with a negative trend over the last three years, suggesting volatility and potential overvaluation in the current market context.