Is OPAL Fuels, Inc. overvalued or undervalued?

As of 8 May 2025, the valuation grade for OPAL Fuels, Inc. has moved from risky to attractive, indicating a significant improvement in its investment appeal. The company is currently considered undervalued, particularly when compared to its peers. Key ratios include a P/E ratio of 33, an EV to EBITDA of 25.67, and a PEG ratio of 0.28, which suggests that the stock is priced favorably relative to its growth potential.
In comparison to its peers, OPAL Fuels, Inc. has a P/E ratio that is higher than UFP Technologies, Inc. at 27.51, but lower than Montauk Renewables, Inc. at 31.13, which is considered very expensive. Additionally, the PEG ratio of 0.28 is significantly lower than UFP Technologies' 0.77, reinforcing the undervaluation narrative. Despite recent underperformance relative to the S&P 500, with a 1-year return of -34.12% compared to the index's 10.26%, the attractive valuation suggests potential for recovery and growth in the future.