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 significant shift in its perceived value. The company appears overvalued based on its current metrics, including a P/E ratio of 23, an EV to EBITDA of 6.93, and a Price to Book Value of 1.67. In comparison, peers such as Tellurian, Inc. exhibit a P/E of -6.30, while TXO Partners LP shows a much lower P/E of 90.13, highlighting the disparity in valuation within the industry.
Epsilon Energy Ltd. has underperformed against the S&P 500 across multiple time frames, with a year-to-date return of -24.15% compared to the index's 13.30%. This trend reinforces the notion that the stock is overvalued, as it struggles to deliver returns in line with broader market performance.