Is California Resources Corp. overvalued or undervalued?

As of 6 May 2025, California Resources Corp. has moved from an expensive valuation grade to fair. The company is currently fairly valued based on its financial metrics. The P/E ratio stands at 14, which is comparable to its peer, National Fuel Gas Co., with a P/E of 11.37. Additionally, California Resources Corp. has an EV to EBITDA ratio of 3.72, significantly lower than the industry average, indicating a more favorable valuation relative to earnings before interest, taxes, depreciation, and amortization.
In terms of returns, California Resources Corp. has underperformed against the S&P 500 over the past year, with a decline of 4.73% compared to the S&P's gain of 10.26%. However, the company boasts a high dividend yield of 196.57% and a return on capital employed (ROCE) of 17.30%, which are attractive features for investors. Overall, based on the analysis of these ratios and peer comparisons, California Resources Corp. is fairly valued in the current market context.