Is Peabody Energy Corp. overvalued or undervalued?

As of 7 February 2025, Peabody Energy Corp. has moved from a fair to an attractive valuation grade. The company is currently considered undervalued, with a P/E ratio of 7, significantly lower than its peers, such as CONSOL Energy, Inc. with a P/E of 22.56 and Warrior Met Coal, Inc. at 24.62. Additionally, Peabody's price to book value stands at 0.59, and it boasts an impressive dividend yield of 182.81%, indicating strong returns for investors.
In comparison to its peers, Peabody Energy Corp. shows a favorable EV to EBITDA ratio of 2.54, while Alliance Resource Partners LP, which is considered very attractive, has a higher EV to EBITDA of 5.82. Despite recent stock performance lagging behind the S&P 500, with a year-to-date return of -36.25% compared to the S&P's 2.44%, the company's valuation metrics suggest it is a compelling investment opportunity given its current pricing relative to its earnings and asset values.