Is Civitas Resources, Inc. overvalued or undervalued?

As of 7 May 2025, the valuation grade for Civitas Resources, Inc. has moved from expensive to very attractive, indicating a significant shift in its perceived value. The company appears undervalued, supported by a P/E ratio of 4, a Price to Book Value of 0.39, and an EV to EBITDA of 2.26. In comparison to its peers, Civitas Resources has a lower P/E than APA Corp. at 3.70 and Matador Resources Co. at 6.13, suggesting it is trading at a more favorable valuation relative to these companies.
Despite recent challenges, including a year-to-date stock return of -30.43% compared to the S&P 500's 12.22%, the substantial dividend yield of 469.21% and a ROCE of 11.73% highlight the company's potential for recovery and growth. Overall, Civitas Resources, Inc. presents an attractive investment opportunity given its valuation metrics and the current market environment.