Is Knife River Corp. overvalued or undervalued?

As of 21 February 2025, Knife River Corp. has moved from a valuation grade of very expensive to expensive. The company is currently overvalued based on its financial metrics. The P/E ratio stands at 29, significantly higher than the industry average P/E of approximately 25.23, indicating a premium valuation. Additionally, the EV to EBITDA ratio is 14.57, which also exceeds the peer average, further supporting the overvaluation assessment.
In comparison to its peers, United States Lime & Minerals, Inc. is considered attractive with a P/E of 24.79 and an EV to EBITDA of 16.46, while Atlas Energy Solutions, Inc. is classified as very expensive with a P/E of 85.15. Knife River's recent stock performance has lagged behind the S&P 500, with a year-to-date return of -20.25% compared to the S&P 500's 2.44%, reinforcing the notion of overvaluation amidst a challenging market environment.