Is Murphy USA, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Murphy USA, Inc. moved from expensive to fair, indicating a more favorable assessment of its stock price. The company appears fairly valued based on its current metrics. Key ratios include a P/E ratio of 35, an EV to EBITDA of 19.25, and a Price to Book Value of 24.17, which suggest that while the stock is not undervalued, it is not excessively priced either.
In comparison to peers, Murphy USA's P/E ratio of 31.85 is higher than BJ's Wholesale Club Holdings, Inc. at 23.94 and Penske Automotive Group, Inc. at 12.91, indicating that it is priced at a premium relative to these competitors. Additionally, the company's strong ROE of 68.97% and ROCE of 28.66% reflect robust profitability metrics. Notably, while Murphy USA has delivered a return of 208.47% over the past five years, it has underperformed the S&P 500, which returned 227.77% in the same period, suggesting that despite its fair valuation, there may be more attractive investment opportunities available.