Is Alpha Metallurgical Resources, Inc. overvalued or undervalued?

As of 8 August 2025, the valuation grade for Alpha Metallurgical Resources, Inc. has moved from attractive to risky, indicating a shift in its investment appeal. The company appears to be overvalued, especially when considering its P/E ratio of 64, which significantly exceeds that of its peers, such as CONSOL Energy, Inc. with a P/E of 48.73 and Arch Resources, Inc. at 13.08. Additionally, the EV to EBITDA ratio stands at 5.12, which is relatively high compared to the industry average, further supporting the overvaluation assessment. In terms of peer comparison, Alpha Metallurgical's valuation metrics are concerning, particularly when juxtaposed with Warrior Met Coal, Inc. which has a much higher P/E of 80.44. The company's return performance also reflects this valuation challenge, as it has underperformed against the S&P 500 over the year with a return of -17.94% compared to the index's 17.14%. Overall, the combination of high valuation ratios and poor relative returns suggests that Alpha Metallurgical Resources, Inc. is currently overvalued.