Is Comstock Resources, Inc. overvalued or undervalued?

As of 30 July 2024, the valuation grade for Comstock Resources, Inc. has moved from expensive to risky, indicating a shift in perception regarding its valuation. The company appears to be overvalued, particularly when considering its P/E ratio of 141, which is significantly higher than the industry average, and an EV to EBITDA of 14.73, which also suggests a premium valuation. Additionally, the PEG ratio stands at 0.91, indicating that the stock may not be justified at its current price given its growth prospects.
In comparison to peers, Comstock Resources, Inc. has a P/E ratio that is markedly higher than Antero Resources Corp. at 17.26 and Magnolia Oil & Gas Corp. at 14.28, both of which are considered fairly valued. Furthermore, the company's recent stock performance shows a 71.36% return over the past year, significantly outperforming the S&P 500's 17.14% return, which may reflect market optimism despite the high valuation metrics.