Is Natural Resource Partners LP overvalued or undervalued?

As of 17 October 2025, the valuation grade for Natural Resource Partners LP has moved from very expensive to attractive, indicating a significant improvement in its valuation outlook. The company appears undervalued, particularly when considering its P/E ratio of 8, which is notably lower than peers like CONSOL Energy, Inc. with a P/E of 48.73 and Arch Resources, Inc. at 13.08. Additionally, Natural Resource Partners LP has an EV to EBITDA of 7.93 and an EV to Capital Employed ratio of 2.10, which further supports its attractive valuation relative to the industry.
In terms of performance, Natural Resource Partners LP has demonstrated strong returns over the long term, with a 3-year return of 153.39% compared to the S&P 500's 81.19%, and an impressive 5-year return of 743.54% versus the S&P 500's 91.29%. This long-term outperformance reinforces the narrative that the stock is undervalued in the current market.