Is Matador Resources Co. overvalued or undervalued?

As of 6 August 2025, the valuation grade for Matador Resources Co. has moved from fair to attractive, indicating a positive shift in its perceived value. The company appears undervalued, supported by a P/E ratio of 6, an EV to EBITDA of 3.50, and a Price to Book Value of 1.09. In comparison to peers, APA Corp. has a P/E of 3.70 and an EV to EBITDA of 2.30, while Chord Energy Corp. shows a significantly higher P/E of 31.09, highlighting Matador's relative attractiveness in the market.
Despite its attractive valuation, Matador has struggled in recent performance, with a year-to-date return of -15.87% compared to the S&P 500's 12.22%, and a 3-year return of -16.67% against the S&P's 70.41%. This discrepancy suggests that while Matador may be undervalued based on its ratios, market sentiment has not yet reflected this potential.