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. Based on the current metrics, the company appears to be overvalued. The P/E ratio stands at 28, while the EV to EBITDA ratio is 7.31, and the Price to Book Value is 1.13. In comparison, a peer like Montauk Renewables, Inc. has a significantly higher P/E ratio of 50.38, suggesting that the market may be pricing in excessive growth expectations relative to its earnings.
The company's recent performance shows a stark contrast to the S&P 500, with a year-to-date return of -47.24% compared to the index's 13.30%. This underperformance, along with the valuation ratios, indicates that Montauk Renewables, Inc. may not justify its current price in the market.