Is GeoPark Ltd. overvalued or undervalued?

As of 6 November 2024, GeoPark Ltd. has moved from an expensive to a very attractive valuation grade. The company appears undervalued based on its current metrics, with a P/E ratio of 4, an EV to EBITDA of 1.81, and a Price to Book Value of 1.70. In comparison, SilverBow Resources, Inc. has a P/E of 5.01, while Granite Ridge Resources, Inc. shows a significantly higher P/E of 11.32, indicating that GeoPark is trading at a substantial discount relative to its peers.
Despite the attractive valuation, GeoPark has underperformed against the S&P 500 across multiple timeframes, with a year-to-date return of -32.47% compared to the S&P 500's 12.22%. This stark contrast highlights the potential for recovery in the stock, as it currently seems to be undervalued in the market.