Is Peabody Energy Corp. overvalued or undervalued?

As of 8 September 2025, Peabody Energy Corp. has moved from expensive to fair in its valuation grade. The company appears to be fairly valued based on its current metrics, with a P/E ratio of 7, a Price to Book Value of 0.59, and an EV to EBITDA of 2.54. In comparison to peers, CONSOL Energy, Inc. has a significantly higher P/E ratio of 48.73, while Alliance Resource Partners LP shows a more favorable EV to EBITDA of 5.29.
Despite recent performance, Peabody Energy Corp. has underperformed relative to the S&P 500 over the past year, with a stock return of -3.71% compared to the index's 17.14%. However, its impressive 5Y return of 435.38% suggests potential for recovery. Overall, the valuation metrics indicate that Peabody Energy Corp. is fairly valued in the current market context.