Is Travelzoo Inc. overvalued or undervalued?

As of 23 October 2024, the valuation grade for Travelzoo Inc. has moved from fair to risky, indicating a shift towards overvaluation concerns. The company appears to be overvalued based on its current P/E ratio of 12, which is significantly lower than the P/E ratio of its peer Ennis, Inc. at 14.02, and its EV to EBITDA ratio of 8.24, which also exceeds the peer average. Additionally, the PEG ratio of 0.60 suggests that the stock may not be priced appropriately relative to its growth potential.
In comparison to its peers, Travelzoo Inc. stands out with a risky classification, while companies like ARC Document Solutions, Inc. are rated very attractive with a P/E of 20.08. The negative price-to-book value of -25.01 further highlights the company's potential struggles in generating shareholder value. Over the past year, Travelzoo's stock has returned -29.86%, underperforming the S&P 500's 17.14% return, reinforcing the notion that the stock is overvalued in the current market context.