Is Sirius XM Holdings, Inc. overvalued or undervalued?

As of 30 July 2019, the valuation grade for Sirius XM Holdings, Inc. moved from fair to risky, indicating a shift in perception regarding its financial health and market position. The company appears to be overvalued based on several key metrics, including a P/E ratio of 6, which is significantly lower than its peers like Nexstar Media Group, Inc. with a P/E of 12.56, and TEGNA, Inc. at 12.12. Additionally, Sirius XM's EV to EBITDA ratio stands at 6.97, while its peers average higher, suggesting that the market may not be pricing in the same growth potential for Sirius XM.
The PEG ratio for Sirius XM is notably low at 0.01, further reinforcing the notion that the stock may be overvalued relative to its growth prospects. The dividend yield of 42.97% is attractive, but it may not be enough to offset the overall valuation concerns. In terms of recent performance, Sirius XM has underperformed compared to the S&P 500, with a year-to-date return of 0.88% versus the S&P 500's 12.22%, and a three-year return of -61.47% compared to the S&P 500's 70.41%. This underperformance highlights the challenges the company faces in the current market environment.