Is Mexco Energy Corp. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Mexco Energy Corp. has moved from very attractive to attractive, indicating a shift in its perceived value. The company appears to be undervalued, particularly when considering its P/E ratio of 11, which is higher than the peer average of approximately 10.54 for similar companies like PrimeEnergy Resources Corp. and significantly higher than SandRidge Energy, Inc. at 5.83. Additionally, Mexco's Price to Book Value stands at 0.82, and its EV to EBITDA ratio is 3.33, both suggesting that the stock may be undervalued relative to its assets and earnings potential.
In terms of peer comparison, Mexco Energy Corp. has a P/E ratio that is competitive but still higher than several peers, indicating room for improvement in valuation. The company has experienced a mixed performance against the S&P 500, with a year-to-date return of -16.40% compared to the index's 13.30%, and a one-year return of -25.22% against the S&P 500's 14.08%. This underperformance reinforces the notion that the stock may be undervalued, as it has not yet reflected its potential in the market.