Is New Fortress Energy, Inc. overvalued or undervalued?

As of 3 March 2025, the valuation grade for New Fortress Energy, Inc. has moved from fair to risky, indicating a significant deterioration in its financial outlook. The company appears to be overvalued given its current metrics, particularly with a Price to Book Value of 0.47 and an EV to EBITDA ratio of 17.22, which are concerning in the context of its financial performance. Additionally, the company has a negative ROE of -11.65%, highlighting ongoing losses that further support the overvaluation assessment.
In comparison to its peers, New Fortress Energy's valuation stands out unfavorably; for instance, Atmos Energy Corp. has a P/E ratio of 21.29 and an EV to EBITDA of 14.61, while NiSource, Inc. shows a P/E of 19.13 and an EV to EBITDA of 12.30. These ratios suggest that New Fortress Energy is not only underperforming but also trading at a premium relative to its financial health. The company's stock has significantly underperformed against the S&P 500, with a year-to-date return of -86.51% compared to the index's 2.44%, reinforcing the notion that it is currently overvalued.