Is Greenfire Resources Ltd. overvalued or undervalued?

As of 19 September 2025, the valuation grade for Greenfire Resources Ltd. has moved from attractive to very attractive, indicating a strong improvement in its valuation outlook. The company appears undervalued, supported by a P/E ratio of 3.74, an EV/EBITDA of 5.75, and a PEG ratio of 0.0041, which suggests significant potential for growth relative to its price.
In comparison to its peers, Greenfire Resources Ltd. stands out with a notably lower P/E ratio than the industry average, reinforcing its undervaluation status. For instance, while Greenfire exhibits a P/E of 3.74, other companies in the sector may have higher ratios, indicating that Greenfire is trading at a discount. Additionally, the company's recent stock performance has been underwhelming, with a year-to-date return of -28.75%, contrasting sharply with the S&P 500's gain of 13.31% during the same period, which highlights the potential for recovery as the market recognizes its value.