Is Dorian LPG Ltd. overvalued or undervalued?

As of 22 May 2025, the valuation grade for Dorian LPG Ltd. has moved from expensive to very expensive, indicating a significant shift in its perceived value. The company is currently considered overvalued. Key ratios include a P/E ratio of 13, an EV to EBITDA of 8.25, and a Price to Book Value of 1.16, which suggest that the stock is trading at a premium compared to its earnings and asset value.
In comparison to its peers, Dorian LPG Ltd. has a higher P/E ratio than Golar LNG Ltd. at 25.82 and a lower EV to EBITDA than Star Bulk Carriers Corp. at 6.50, highlighting its relative overvaluation in the market. The company's dividend yield of 10.68% may attract income-focused investors, but the overall financial metrics suggest that it is not a compelling buy at this price point. Notably, while Dorian LPG has seen a 15.78% return over the past month, it has underperformed the S&P 500 over the past year, which raises further concerns about its current valuation.