Is Crescent Energy Co. overvalued or undervalued?

As of 26 February 2025, the valuation grade for Crescent Energy Co. has moved from expensive to risky, indicating a shift in perception regarding its market position. The company appears to be overvalued based on its current metrics, with a P/E ratio of 16, which is significantly higher than its peer average of 13.15, and an EV to EBITDA ratio of 4.39 compared to the industry average of 3.57. Additionally, the Price to Book Value stands at 0.89, suggesting that the stock is trading close to its book value, yet still reflects a premium relative to peers like Permian Resources Corp. with a P/E of 9.23.
Crescent Energy Co. has underperformed against the S&P 500, with a year-to-date return of -39.9% compared to the index's 12.22%. This stark contrast in performance further supports the view that the stock is overvalued in the current market context.