Is Earthstone Energy, Inc. overvalued or undervalued?

As of 15 October 2023, Earthstone Energy, Inc. has moved from fair to attractive, indicating a positive shift in its valuation outlook. The company is currently undervalued, supported by key ratios such as a Price-to-Earnings (P/E) ratio of 8.5, a Price-to-Book (P/B) ratio of 1.2, and a Debt-to-Equity (D/E) ratio of 0.3, which suggest strong fundamentals compared to its market price.
In comparison to its peers, Devon Energy has a P/E ratio of 10.5, while Continental Resources shows a P/B ratio of 1.8. This highlights Earthstone's relative attractiveness within the sector. Additionally, Earthstone's recent stock performance has outpaced the Sensex, reinforcing the notion that the market may not fully recognize its value potential.