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

As of 24 February 2022, the valuation grade for United Parks & Resorts, Inc. has moved from fair to risky, indicating a shift in perception regarding its investment potential. The company appears to be overvalued, particularly given its P/E ratio of 14, which is significantly lower than the peer average of 18.13 for similar companies. Additionally, the EV to EBITDA ratio stands at 8.60, while peers like Churchill Downs, Inc. have a higher ratio of 12.60, further suggesting that United Parks is not positioned favorably in comparison to its competitors.
The Price to Book Value is notably negative at -6.52, which is a concerning indicator of the company's financial health. In terms of returns, United Parks has underperformed against the S&P 500 across multiple periods, with a year-to-date return of -8.31% compared to the S&P's 12.22%, and a 3-year return of -3.86% against the S&P's impressive 70.41%. This underperformance reinforces the notion that the stock may be overvalued relative to its peers and the broader market.