Is Montauk Renewables, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Montauk Renewables, Inc. has moved from attractive to fair. The company appears to be fairly valued based on its current metrics. Key valuation ratios include a P/E ratio of 28, an EV to EBITDA of 7.31, and a Price to Book Value of 1.13. In comparison, a peer such as Montauk Renewables has a significantly higher P/E ratio of 50.38, indicating that it may be overvalued relative to Montauk.
In terms of recent performance, Montauk Renewables has underperformed compared to the S&P 500, with a year-to-date return of -47.24% versus the S&P 500's 13.30%. This stark contrast in returns further reinforces the notion that Montauk may be fairly valued at present, given its current market challenges.