Is Townsquare Media, Inc. overvalued or undervalued?

As of 9 November 2023, Townsquare Media, Inc. has moved from a valuation grade of very expensive to risky. The company is currently considered undervalued, with a P/E ratio of 4, which is significantly lower than peers such as Sinclair, Inc. at 2.93 and Gray Television, Inc. at 2.05. Additionally, Townsquare's EV to EBITDA stands at 6.88, while its EV to Sales is 1.28, indicating a potentially attractive entry point compared to its industry.
Despite the low valuation ratios, the company has a high dividend yield of 791.68% and a ROCE of 15.06%, suggesting strong operational efficiency. However, the negative book value (BV) for ROE raises concerns. In terms of stock performance, Townsquare has underperformed against the S&P 500 over the past year, with a return of -26.23% compared to the index's 10.26%, yet it has shown resilience in the short term with a 3.67% return over the past week.