Is Berry Corp. overvalued or undervalued?

As of 8 May 2025, Berry Corp. has moved from a very attractive to a risky valuation grade, indicating a significant shift in its perceived investment quality. The company appears to be overvalued, particularly when considering its P/E ratio of 2.37, which is substantially lower than the industry average, and an EV to EBITDA ratio of 2.62, also below many peers. The PEG ratio stands at 0.60, suggesting that growth expectations may not justify the current price.
In comparison to its peers, SilverBow Resources, Inc. has a fair valuation with a P/E of 5.01, while Vitesse Energy, Inc. is rated very attractive with a P/E of 38.88, highlighting the disparity in valuation within the sector. Additionally, Berry Corp.'s dividend yield of 8.99% is appealing, but its ROCE of 5.90% and ROE of 18.20% raise concerns about operational efficiency. Recent stock performance shows a 1-month return of 26.10%, outperforming the S&P 500's 3.83%, yet the longer-term trends reveal significant underperformance, reinforcing the notion that Berry Corp. is currently overvalued.