Is United Parks & Resorts, Inc. overvalued or undervalued?

As of 24 February 2022, the valuation grade for United Parks & Resorts, Inc. moved from expensive to risky, indicating a shift in perception regarding its valuation. The company is currently assessed as overvalued. Key ratios include a P/E ratio of 14, an EV to EBITDA of 8.60, and a PEG ratio of 5.63, which suggests that the stock may not be justified at its current price given its earnings growth prospects.
In comparison to peers, Cinemark Holdings, Inc. has a P/E of 15.68 and an EV to EBITDA of 11.12, while Madison Square Garden Sports Corp. shows a significantly higher P/E of 320.70, indicating a stark contrast in valuation metrics among the industry. Notably, United Parks & Resorts has underperformed against the S&P 500 on a year-to-date basis, with a return of -19.43% compared to the S&P 500's 2.44%, reinforcing the notion that the stock may be overvalued in its current state.