Is ConocoPhillips overvalued or undervalued?

As of 15 September 2023, the valuation grade for ConocoPhillips has moved from very attractive to expensive, indicating a shift towards overvaluation. The company is currently considered overvalued based on its P/E ratio of 20, which is higher than its peer EOG Resources, Inc. at 10.65 and Pioneer Natural Resources Co. at 13.11. Additionally, ConocoPhillips has an EV to EBITDA ratio of 8.84, which is also above the industry average, suggesting that the stock may not be a good value at its current price.
In terms of performance, ConocoPhillips has underperformed relative to the S&P 500 across multiple time frames, with a year-to-date return of -5.74% compared to the S&P 500's 12.22%. This trend continues over one year and three years, where the stock returned -13.94% and -17.37%, respectively, against the S&P 500's gains. Given these factors, ConocoPhillips appears to be overvalued in the current market environment.