Is Magnolia Oil & Gas Corp. overvalued or undervalued?

As of 30 April 2025, the valuation grade for Magnolia Oil & Gas Corp. moved from expensive to fair, indicating a more favorable assessment of its market position. The company appears fairly valued based on its current metrics, with a P/E ratio of 13, a Price to Book Value of 2.72, and an EV to EBITDA of 5.69. In comparison to peers, Antero Resources Corp. has a higher P/E of 17.26, while Murphy Oil Corp. is considered very attractive with a P/E of 12.81.
Despite a recent decline in one-year returns of -2.38% compared to the S&P 500's 17.14%, Magnolia Oil & Gas has shown strong performance over longer periods, with a remarkable 303.44% return over the past five years, significantly outpacing the S&P 500's 96.61%. This suggests that while the stock may be currently fairly valued, its historical performance indicates potential for future growth.