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

As of 29 April 2025, the valuation grade for Northern Oil & Gas, Inc. moved from expensive to very attractive, indicating a significant improvement in its valuation outlook. The company is currently undervalued, with a P/E ratio of 5, which is notably lower than its peer Ovintiv, Inc. at 6.38, and an EV to EBITDA ratio of 3.27, compared to the industry average reflected by peers like Antero Resources Corp. at 8.49. Additionally, the company boasts a solid ROE of 22.56%, further supporting its attractive valuation.
In terms of peer comparison, Northern Oil & Gas, Inc. stands out with a P/E ratio of 4.35, which is significantly lower than the industry average, while Murphy Oil Corp. has a P/E of 12.81, reinforcing Northern's undervaluation. Despite recent underperformance with a YTD return of -29.33% compared to the S&P 500's 12.22%, the long-term perspective shows a remarkable 5-year return of 386.30%, suggesting potential for recovery and growth ahead.