Is Coterra Energy, Inc. overvalued or undervalued?

As of 4 August 2025, the valuation grade for Coterra Energy, Inc. moved from expensive to fair, indicating a more favorable assessment of its stock. The company appears to be fairly valued based on its P/E ratio of 15, which is lower than the peer average of approximately 13.19, and its EV to EBITDA ratio of 6.99, which also compares favorably against peers like Chesapeake Energy Corp. with an EV to EBITDA of 8.29. Additionally, Coterra's Price to Book Value stands at 1.51, suggesting a reasonable valuation relative to its book value.
In comparison to its peers, Coterra Energy's valuation metrics indicate it is positioned well within the industry, especially when considering its ROE of 10.01% and ROCE of 9.57%. However, its recent stock performance shows a decline of 5.68% year-to-date, while the S&P 500 has risen by 12.22% in the same period, reflecting underperformance relative to the broader market. Overall, Coterra Energy, Inc. is fairly valued in the current market context.