Is Montauk Renewables, Inc. overvalued or undervalued?

As of 6 August 2025, the valuation grade for Montauk Renewables, Inc. has moved from very expensive to fair. The company appears to be undervalued based on its current metrics, with a P/E ratio of 28, a Price to Book Value of 1.13, and an EV to EBITDA ratio of 7.31. In comparison, a peer such as Montauk Renewables has a significantly higher P/E ratio of 50.38, indicating that Montauk may be trading at a discount relative to its peers.
Despite the recent stock performance showing a 9.52% return over the past week compared to a 1.05% return for the S&P 500, the year-to-date return of -42.21% against the S&P's 12.22% highlights the challenges the company faces. Overall, Montauk Renewables, Inc. seems to be positioned as an attractive investment opportunity given its fair valuation relative to its peers.