Is Antero Resources Corp. overvalued or undervalued?

As of 28 May 2025, the valuation grade for Antero Resources Corp. has moved from very expensive to expensive, indicating a shift in its perceived value. The company is currently considered overvalued based on its key financial metrics. The P/E ratio stands at 31, while the EV to EBITDA ratio is 12.37, and the PEG ratio is notably low at 0.19, suggesting that the stock may not be justified at its current price level.
In comparison to its peers, Antero Resources Corp. has a P/E ratio of 34.56, which is higher than Marathon Oil Corp. at 15.00 and Ovintiv, Inc. at 6.15, both of which are also classified as expensive. Additionally, Antero's ROCE of 3.73% and ROE of 5.29% are relatively low, further supporting the notion of overvaluation. Despite recent strong stock performance, with a year-to-date return of 20.74% compared to the S&P 500's 2.44%, the underlying financial ratios indicate that Antero Resources Corp. may not sustain its current valuation levels.