Is FLEX LNG Ltd. overvalued or undervalued?

As of 26 February 2020, the valuation grade for FLEX LNG Ltd. moved from attractive to very attractive, indicating a positive shift in its perceived value. The company appears undervalued based on key metrics, including a P/E ratio of 11, an EV to EBITDA ratio of 9.94, and a Price to Book Value of 1.65. In comparison to peers, FLEX LNG Ltd. has a lower P/E ratio than Frontline Plc at 21.44 and a more favorable EV to EBITDA ratio than Kirby Corp. at 15.18.
Despite recent underperformance with a 1-year stock return of -5.14% compared to the S&P 500's 17.14%, the long-term outlook remains strong, as evidenced by a remarkable 5-year return of 339.22% against the S&P 500's 96.61%. This suggests that while short-term fluctuations may be concerning, the overall valuation metrics indicate that FLEX LNG Ltd. is positioned favorably in the market.