Is EQT Corp. overvalued or undervalued?

As of 30 June 2025, the valuation grade for EQT Corp. has moved from expensive to very expensive, indicating a significant deterioration in its valuation appeal. The company is currently overvalued, with a P/E ratio of 82, which is substantially higher than its peers, such as Occidental Petroleum Corp. at 13.39 and Diamondback Energy, Inc. at 9.24. Additionally, EQT's EV to EBITDA stands at 12.49, while its PEG ratio is a low 0.36, suggesting that despite high growth expectations, the current price does not reflect a reasonable valuation.
In comparison to the S&P 500, EQT Corp. has shown mixed performance with a year-to-date return of 7.11%, lagging behind the index's 12.22%. Over the past year, however, it has outperformed the S&P 500 with a return of 47.30% compared to 17.14%. This indicates that while the stock has performed well recently, its current valuation metrics suggest it is not justified at these levels.