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 stronger investment appeal. The company appears to be undervalued, particularly when considering its P/E ratio of 3.74 compared to the industry average, and an EV to EBITDA ratio of 5.75, which suggests a favorable valuation relative to its earnings potential. Additionally, the PEG ratio is notably low at 0.0041, further reinforcing the undervaluation narrative.
In comparison to its peers, Greenfire Resources Ltd. stands out with a significantly lower P/E ratio than the industry average, which typically indicates a more attractive entry point for investors. For instance, if we consider a peer like a typical oil company with a higher P/E, Greenfire's valuation becomes even more compelling. Despite recent stock performance, where Greenfire has seen a YTD return of -31.02% compared to the S&P 500's 13.31%, the current valuation metrics suggest that the stock may present a buying opportunity for investors looking for value in the oil sector.