Is Black Stone Minerals LP overvalued or undervalued?

As of 27 February 2017, the valuation grade for Black Stone Minerals LP moved from risky to very attractive, indicating a significant improvement in its investment appeal. The company appears undervalued, especially when considering its P/E ratio of 18, which is relatively low compared to peers like WisdomTree, Inc. with a P/E of 22.34, and Viper Energy, Inc. with a P/E of 8.34. Additionally, the EV to EBITDA ratio stands at 12.88, while peers like Blackstone Secured Lending Fund and Sitio Royalties Corp. have lower ratios of 6.55 and 4.96, respectively.
In terms of returns, Black Stone Minerals LP has shown a mixed performance compared to the S&P 500, with a notable 5-year return of 107.03% against the index's 96.61%, but it has underperformed in the shorter term, particularly year-to-date with a decline of 11.23% compared to the S&P 500's gain of 12.22%. Overall, the valuation metrics suggest that Black Stone Minerals LP is positioned favorably relative to its peers, reinforcing the view that it is undervalued.