The stock of U.S. newspaper companies has plunged in the past couple of years — but the price is still too high says one analyst.

Shares of nearly all publicly traded newspaper companies have lost as much as 80% of their value in the last year — but they haven’t hit bottom yet, says a blistering report on the sector released Monday by Morningstar.
The Chicago-based independent research firm calls newspapers “the market’s most overvalued stocks.”
“Such sharp price declines (including a 52% drop for Gannett, an 82% dive for McClatchy, and a 94% loss for rural/suburban publisher GateHouse), coupled with what may be perceived as currently cheap valuation ratios, could be tempting to value-minded investors, but we say, ‘Look out below!,’” says the report by Matthew Coffina, with contributions from analyst Tom Corbett.

On the other hand, the newspaper business is in deep need of restructuring — nothing like a ten-year financial beat-down to get the message across.