Is California Resources Corp. overvalued or undervalued?

As of 17 October 2025, California Resources Corp. has moved from a fair to very attractive valuation grade. The company appears to be undervalued, with a P/E ratio of 14, a Price to Book Value of 1.17, and an EV to EBITDA ratio of 3.72. In comparison to peers, California Resources Corp. has a more favorable P/E ratio than Permian Resources Corp. at 9.23 and a significantly lower EV to EBITDA ratio than National Fuel Gas Co. at 8.28, indicating a relative undervaluation in the sector.
Despite the attractive valuation metrics, California Resources Corp. has underperformed against the S&P 500, with a year-to-date return of -8.88% compared to the index's 13.30%. This suggests that while the stock may be undervalued based on fundamental ratios, market sentiment has not favored it recently.