Is Urban One, Inc. overvalued or undervalued?

As of 8 August 2024, the valuation grade for Urban One, Inc. has moved from expensive to risky, indicating a shift towards a more cautious outlook. The company appears to be overvalued based on its current metrics, particularly with a P/E ratio of 46, which is significantly higher than peers like Marcus Corp. at 21.71 and Golden Entertainment, Inc. at 37.80. Additionally, Urban One's EV to EBITDA ratio stands at 3.82, while its EV to Sales ratio is 1.11, both suggesting that the company may not be generating sufficient returns relative to its valuation.
In comparison to the S&P 500, Urban One has underperformed significantly over multiple periods, with a 1-year return of -25.13% versus the S&P 500's 17.14%, and a staggering 3-year return of -72.71% compared to the S&P's 70.41%. This stark contrast reinforces the notion that Urban One, Inc. is currently overvalued amidst its risky valuation grade.