Is Northern Oil & Gas, Inc. overvalued or undervalued?

As of 29 April 2025, the valuation grade for Northern Oil & Gas, Inc. has moved from attractive to very attractive, indicating a strong improvement in its perceived value. The company is currently undervalued, with a P/E ratio of 5.74, significantly lower than its peers such as Magnolia Oil & Gas Corp. at 13.72 and SM Energy Co. at 3.89. Additionally, Northern Oil & Gas boasts a robust ROE of 22.56% and an EV/EBITDA ratio of 3.44, which further supports its favorable valuation.
In comparison to the broader market, Northern Oil & Gas has faced challenges, particularly with a year-to-date return of -20.21% against the S&P 500's 2.44%. However, its strong dividend yield of 5.64% and solid ROCE of 16.94% suggest that it remains an attractive investment opportunity. Overall, the company's valuation metrics and peer comparisons reinforce the conclusion that it is currently undervalued.