Is The New York Times Co. overvalued or undervalued?

As of 14 May 2025, The New York Times Co. has moved from a fair to expensive valuation grade. The company appears to be overvalued based on its current metrics, with a P/E ratio of 31, a Price to Book Value of 5.30, and an EV to EBITDA of 20.06. In comparison, its peer News Corp. has a lower P/E of 28.64 and an EV to EBITDA of 12.69, indicating that The New York Times Co. is trading at a premium relative to its peers.
The company's ROCE stands at a strong 27.86%, and its ROE is 16.94%, which are commendable figures; however, the elevated valuation ratios suggest that the stock may not be justified at its current price of 54.72. Additionally, while the stock has outperformed the S&P 500 on a 3-year basis with a return of 86.95% compared to 58.74%, the recent trends indicate a decline in short-term performance, further supporting the conclusion that it is overvalued.