Is Chesapeake Energy Corp. overvalued or undervalued?

As of 5 August 2025, the valuation grade for Chesapeake Energy Corp. has moved from expensive to attractive, indicating a shift towards a more favorable assessment. The company appears undervalued, particularly when considering its P/E ratio of 31, which is significantly higher than the peer average P/E of 20.15 for the sector. Additionally, Chesapeake's EV to EBITDA stands at 14.95, while peers like Coterra Energy, Inc. have a more favorable ratio of 6.08, further supporting the notion of undervaluation.
In terms of return performance, Chesapeake has outperformed the S&P 500 over the past year with a return of 32.72% compared to the S&P's 17.14%. This positive return, coupled with the company's attractive valuation metrics such as a Price to Book Value of 1.59 and a ROE of 5.06%, reinforces the conclusion that Chesapeake Energy Corp. is indeed undervalued relative to its peers and the broader market.