Is Dynagas LNG Partners LP overvalued or undervalued?

As of 11 June 2025, the valuation grade for Dynagas LNG Partners LP has moved from attractive to very attractive, indicating a significant improvement in its valuation outlook. The company is currently deemed undervalued, with a P/E ratio of 3, which is notably lower than the industry average. Additionally, the price-to-book value stands at 0.27, and the EV to EBITDA ratio is 3.44, further supporting the undervaluation thesis.
In comparison to its peers, Dynagas LNG Partners LP's P/E ratio is significantly lower than Capital Product Partners LP, which has a P/E of 25.89, and Overseas Shipholding Group, Inc., which is considered expensive with a P/E of 9.41. The PEG ratio for Dynagas is exceptionally low at 0.04, highlighting its growth potential relative to its price. Recent stock performance shows that Dynagas has underperformed against the S&P 500, with a year-to-date return of -33.82%, which may indicate a market mispricing that investors could capitalize on.