Is Navigator Holdings Ltd. overvalued or undervalued?

As of 18 February 2025, the valuation grade for Navigator Holdings Ltd. has moved from very expensive to expensive, indicating a shift in perception regarding its market value. The company is currently deemed overvalued. Key ratios include a P/E ratio of 9, a Price to Book Value of 0.78, and an EV to EBITDA of 6.16, which suggest that despite some attractive metrics, the overall valuation remains high relative to its earnings potential.
In comparison to its peers, Navigator Holdings Ltd. has a P/E ratio of 9.28, while ZIM Integrated Shipping Services Ltd. is rated very attractive with a P/E of 0.89, and FLEX LNG Ltd. has a P/E of 11.69. This disparity highlights that Navigator is trading at a premium compared to more favorably valued competitors. Additionally, the company has underperformed against the S&P 500 over the past year, with a return of -12.80% compared to the index's 10.26%, reinforcing the notion that it may be overvalued in the current market context.