Is Townsquare Media, Inc. overvalued or undervalued?

As of 9 November 2023, the valuation grade for Townsquare Media, Inc. has moved from expensive to risky, indicating a shift in perception regarding its financial health. The company appears to be overvalued, particularly given its P/E ratio of 4, which is significantly lower than peers like Sinclair, Inc. with a P/E of 6.25 and Gray Television, Inc. at 3.83. Additionally, the EV to EBITDA ratio stands at 6.88, while its Price to Book Value is notably negative at -4.05, further highlighting concerns about its valuation relative to its peers.
In comparison to the S&P 500, Townsquare Media has underperformed across multiple timeframes, with a year-to-date return of -24.42% versus the S&P 500's 12.22%. This trend continues over one year, where the company has a return of -31.23% compared to the index's 17.14%. Given these metrics and the unfavorable peer comparisons, Townsquare Media, Inc. is positioned as overvalued in the current market landscape.