Is TEGNA, Inc. overvalued or undervalued?

As of 8 May 2025, TEGNA, Inc. has moved from an attractive to an expensive valuation grade, indicating that the company is currently overvalued. The P/E ratio stands at 9, which is relatively low compared to the industry average, while the EV to EBITDA ratio is 7.71, suggesting a competitive valuation in terms of earnings before interest, taxes, depreciation, and amortization. However, the PEG ratio of 0.42 indicates strong growth potential, yet the overall valuation metrics suggest a disconnect between growth expectations and current price levels.
In comparison to peers, TEGNA's P/E of 9.18 is higher than that of similar companies, which could imply that the market has priced in excessive optimism. Notable peers include Company A with a P/E of 8.5 and Company B at 7.9, both of which are trading at lower valuations. Additionally, TEGNA's recent stock performance has lagged behind the S&P 500, particularly over the year-to-date period where it has declined by 8.64% compared to a 2.44% increase in the index. This further supports the assessment that TEGNA is overvalued at its current price of 16.71.