Is Epsilon Energy Ltd. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Epsilon Energy Ltd. has moved from attractive to very expensive, indicating a shift towards overvaluation. The company appears overvalued based on its current metrics, with a P/E ratio of 23, a Price to Book Value of 1.67, and an EV to EBITDA of 6.93. In comparison to peers, Epsilon's P/E ratio is significantly higher than Tellurian, Inc. at -6.30 and Riley Exploration Permian, Inc. at 5.24, both of which are more attractively valued.
Recent stock performance has been poor, with Epsilon Energy Ltd. showing a year-to-date return of -24.15%, compared to a positive return of 13.30% for the S&P 500, reinforcing the notion that the stock is not only overvalued but also underperforming relative to broader market trends.