Is Peabody Energy Corp. overvalued or undervalued?

As of 19 September 2025, Peabody Energy Corp. has moved from a fair valuation to an expensive one. The company appears to be overvalued based on its current metrics. Key ratios include a P/E Ratio of 7, a Price to Book Value of 0.59, and an EV to EBITDA of 2.54, which suggest that the stock is trading at a lower valuation compared to its peers.
In comparison to its peers, Peabody Energy Corp. has a significantly lower P/E ratio than CONSOL Energy, Inc. at 48.73 and Warrior Met Coal, Inc. at 80.44, indicating that it is undervalued relative to these companies. However, its valuation grade suggests otherwise, as it is now considered expensive. Notably, while Peabody has shown impressive returns over the past five years at 458.23%, it has underperformed the S&P 500 over the same period, which returned 100.77%.