Is Alpha Metallurgical Resources, Inc. overvalued or undervalued?

As of 23 May 2025, the valuation grade for Alpha Metallurgical Resources, Inc. has moved from attractive to expensive, indicating a shift in perception regarding its market value. The company is currently considered overvalued. Key ratios include a P/E ratio of 64, an EV to EBITDA of 5.12, and a Price to Book Value of 1.06, which are significantly higher than industry averages.
In comparison to peers, Alpha Metallurgical Resources has a P/E ratio of 65.54, while a notable competitor has a lower EV to EBITDA ratio of 5.27. The company's return on equity (ROE) stands at a mere 1.65%, further highlighting its underperformance relative to expectations. Additionally, the stock has underperformed against the S&P 500, with a year-to-date decline of 47.02% compared to the index's 2.44% gain, reinforcing the notion that the stock may be overvalued at its current price of 106.02.