Is Six Flags Entertainment Corp. overvalued or undervalued?

As of 27 February 2025, the valuation grade for Six Flags Entertainment Corp. has moved from expensive to risky, indicating a deterioration in its valuation outlook. The company appears to be overvalued, particularly when considering its P/E ratio of -9.54, which is significantly lower than the industry average, and an EV to EBITDA ratio of 10.11. Additionally, the absence of a PEG ratio and a dividend yield further emphasizes the company's challenging financial position.
In comparison to peers, Six Flags is trailing behind companies such as Cedar Fair, which has a more favorable valuation profile. The stock has underperformed against the S&P 500, with a year-to-date return of -52.67% compared to the index's 12.22%, highlighting the increasing concerns surrounding its valuation and growth prospects.