Is Civitas Resources, Inc. overvalued or undervalued?

As of 7 May 2025, the valuation grade for Civitas Resources, Inc. moved from attractive to very attractive. The company is currently undervalued, evidenced by its low P/E ratio of 4, a price-to-book value of 0.39, and an EV to EBITDA ratio of 2.26. The high dividend yield of 469.21% further supports this assessment, indicating strong returns relative to its share price.
In comparison to its peers, Civitas Resources stands out with a significantly lower P/E ratio than Chesapeake Energy Corp. at 31.99 and Coterra Energy, Inc. at 15.78, which are both considered expensive. Additionally, while Civitas has an EV to EBITDA of 2.26, APA Corp. shows a more attractive ratio of 2.25, suggesting that Civitas is positioned favorably within its industry. Despite recent stock performance lagging behind the S&P 500, the underlying valuation metrics indicate that Civitas Resources, Inc. presents a compelling investment opportunity.