Is Ardmore Shipping Corp. overvalued or undervalued?

As of 6 November 2024, Ardmore Shipping Corp. has moved from an attractive to a very attractive valuation grade. The company is currently undervalued, with a P/E ratio of 4, a price-to-book value of 0.64, and an EV to EBITDA ratio of 2.99. These metrics indicate a significant discount compared to its peers, such as Navios Maritime Partners LP, which has a P/E of 3.53, and Costamare, Inc., with a P/E of 3.25, both of which are also in the attractive to fair range.
In comparison to its peers, Ardmore Shipping Corp. stands out with a robust dividend yield of 6.15% and a return on capital employed (ROCE) of 15.28%. While the stock has underperformed the S&P 500 over the past year, its long-term performance remains strong, with a 5-year return of 116.74%. This suggests that despite recent challenges, the underlying value of Ardmore Shipping Corp. is compelling, reinforcing its status as undervalued in the current market.