Is Peabody Energy Corp. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Peabody Energy Corp. has moved from attractive to expensive, indicating a shift towards overvaluation. The company is currently assessed as overvalued based on key ratios, including 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, Peabody's P/E ratio is significantly lower than that of CONSOL Energy, Inc., which has a P/E of 48.73, and Warrior Met Coal, Inc., which stands at 80.44, suggesting that Peabody may not justify its current price relative to its earnings potential.
Despite a strong recent performance, with a year-to-date return of 49.52% compared to the S&P 500's 13.30%, the overall valuation metrics suggest that Peabody Energy Corp. is overvalued in the current market context.