Is Viad Corp. overvalued or undervalued?

As of 11 March 2025, the valuation grade for Viad Corp. has moved from attractive to risky, indicating a shift in perception regarding its financial health. The company appears to be overvalued given its current metrics, particularly with a Price to Book Value of 1.83 and an EV to EBITDA ratio of 7.04, which suggests that investors are paying a premium relative to its earnings potential. Additionally, the company's ROCE stands at 15.65%, but its ROE is notably negative at -10.69%, further highlighting financial instability.
In comparison to peers, CRA International, Inc. has a more favorable P/E ratio of 22.54 and an EV to EBITDA of 12.25, reinforcing the notion that Viad Corp. is not performing as well within its industry. The stock's recent performance has also been underwhelming, with a year-to-date return of -13.81% compared to the S&P 500's 12.22%, and a three-year return of just 0.74% versus the S&P 500's impressive 70.41%. This underperformance, combined with the valuation metrics, supports the conclusion that Viad Corp. is overvalued.