Is OPAL Fuels, Inc. overvalued or undervalued?

As of 7 August 2025, the valuation grade for OPAL Fuels, Inc. has moved from attractive to risky, indicating a shift towards a more cautious outlook. The company appears to be overvalued, particularly when considering its P/E ratio of 33, which is significantly higher than the peer average of 17.23 for companies like Aspen Aerogels, Inc. and Montauk Renewables, Inc. Additionally, OPAL's EV to EBITDA ratio stands at 75.11, far exceeding the peer average of 26.33, and its PEG ratio of 0.28 suggests a misalignment between growth expectations and current valuation.
In comparison to its peers, OPAL Fuels, Inc. shows a much higher P/E ratio than Aspen Aerogels, Inc. at 29.81 and a notably higher EV to EBIT ratio compared to Montauk Renewables, Inc. at 50.38. Furthermore, the company's recent stock performance has lagged significantly behind the S&P 500, with a year-to-date return of -36.28% compared to the S&P's 12.22%, reinforcing the notion that OPAL Fuels, Inc. may not be a compelling investment at its current valuation levels.