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 in perception regarding its market value. The company appears to be overvalued based on its current metrics, particularly with a P/E ratio of 7, which is significantly lower than its peers like CONSOL Energy, Inc. with a P/E of 48.73 and Arch Resources, Inc. at 13.08. Additionally, Peabody's EV to EBITDA stands at 2.54, while the industry average is considerably higher, suggesting that the company's earnings potential relative to its enterprise value is not as favorable as its competitors.
In terms of valuation ratios, Peabody Energy Corp. has a Price to Book Value of 0.59 and an EV to Sales ratio of 0.43, both of which indicate that the stock may not be reflecting its true value compared to its assets and sales. The company has shown strong returns over the past year, with a stock return of 23.75% compared to the S&P 500's 14.08%, but this performance does not mitigate the concerns raised by its current valuation metrics. Overall, Peabody Energy Corp. is deemed overvalued in the current market context.