Is Matador Resources Co. overvalued or undervalued?

As of 23 April 2025, Matador Resources Co. has moved from an attractive to a very attractive valuation grade. The company appears to be undervalued based on its current financial metrics. Key ratios include a P/E ratio of 6, an EV to EBITDA of 3.50, and a Price to Book Value of 1.09, which are significantly lower than industry averages.
In comparison to peers, Matador Resources Co. has a P/E ratio of 6.37, while Chesapeake Energy Corp. is at 31.99, indicating a substantial valuation gap. Additionally, Coterra Energy, Inc. shows a higher P/E of 15.78, further supporting the notion that Matador is undervalued. Despite recent stock performance trailing the S&P 500 over the past year, the long-term return of 385.74% over five years suggests strong underlying value that may not yet be fully recognized by the market.