Is BP Prudhoe Bay Royalty Trust overvalued or undervalued?

As of 9 May 2024, the valuation grade for BP Prudhoe Bay Royalty Trust has moved from very attractive to does not qualify, indicating a significant deterioration in its investment appeal. The company is currently overvalued, as evidenced by its P/E ratio of 2, which, while low, is overshadowed by negative metrics such as an EV to EBIT of -8.59 and an EV to EBITDA of -8.59, suggesting severe operational challenges. Additionally, the ROE stands at an impressive 206.59%, but this is misleading given the negative capital employed.
In comparison with peers, WisdomTree, Inc. is considered expensive with a P/E of 17.96, while Dorchester Minerals LP is rated very attractive with a P/E of 14.36. Other notable peers like Bain Capital Specialty Finance, Inc. and Sabine Royalty Trust also exhibit stronger valuations, with P/E ratios of 8.55 and 12.41, respectively. The recent performance of BP Prudhoe Bay Royalty Trust has been dismal, with a one-year stock return of -77.79%, contrasting sharply with the S&P 500's gain of 10.26%, further reinforcing the notion that the company is overvalued in its current state.