Is Dorian LPG Ltd. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Dorian LPG Ltd. has moved from expensive to very expensive, indicating a significant deterioration in its valuation outlook. Based on the current metrics, Dorian LPG appears to be overvalued, particularly when compared to its peers. The company has a P/E ratio of 13, an EV to EBITDA of 8.25, and a Price to Book Value of 1.16, which are all higher than several of its peers, such as International Seaways, Inc. with a P/E of 9.81 and EV to EBITDA of 6.74, and Danaos Corp. with a P/E of 4.72 and EV to EBITDA of 3.23.
In terms of performance, Dorian LPG's stock has returned 73.21% over the past three years, which is lower than the S&P 500's return of 81.19% during the same period, further reinforcing the notion of overvaluation. The stock's recent performance has also been volatile, with a 1-month return of -16.02% compared to a positive return of 0.96% for the S&P 500.