Is Hallador Energy Co. overvalued or undervalued?
As of August 6, 2024, Hallador Energy Co. is considered risky due to its high valuation ratios, such as a P/E of 139, indicating it is overvalued compared to peers, despite impressive returns of 194.32% over the past year and 2560.00% over five years.
As of 6 August 2024, the valuation grade for Hallador Energy Co. has moved from expensive to risky. The company appears to be overvalued given its high valuation ratios, including a P/E ratio of 139, a Price to Book Value of 6.45, and an EV to EBIT of 149.06. In comparison, peers such as SunCoke Energy, Inc. and NACCO Industries, Inc. have much lower P/E ratios of 8.93 and 19.39, respectively, indicating that Hallador is trading at a significant premium relative to its industry.The stock has shown impressive returns, with a 1-year return of 194.32% compared to the S&P 500's 17.14%, and a staggering 5-year return of 2560.00% against the S&P 500's 96.61%. However, despite these strong returns, the high valuation ratios suggest that the stock may not be justified at its current price levels.
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