Is Peabody Energy Corp. overvalued or undervalued?

As of 19 September 2025, the valuation grade for Peabody Energy Corp. moved from fair to expensive, indicating that the stock is overvalued. The company exhibits a P/E ratio of 7, a Price to Book Value of 0.59, and an EV to EBITDA ratio of 2.54, which are significantly lower than its peers, such as CONSOL Energy, Inc. with a P/E of 48.73 and Warrior Met Coal, Inc. at 80.44, suggesting that Peabody is trading at a discount relative to these companies despite its expensive valuation grade.
In terms of recent performance, Peabody Energy Corp. has shown strong short-term returns, with a 1-week return of 15.02% compared to the S&P 500's 1.22%, and a 1-month return of 39.61% against the S&P 500's 3.95%. However, over the longer term, the stock has underperformed, with a 1-year return of -3.60% compared to the S&P 500's 16.64%. Overall, the combination of its expensive valuation grade and mixed performance suggests that Peabody Energy Corp. is currently overvalued.