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 is currently considered overvalued based on its financial 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 significant discount relative to its earnings and book value.
In comparison to its peers, Peabody Energy Corp. has a lower P/E ratio than CONSOL Energy, Inc. at 48.73 and Warrior Met Coal, Inc. at 80.44, but is higher than Alliance Resource Partners LP at 10.86. This indicates that while Peabody may appear undervalued relative to its own metrics, it is still overvalued when compared to more attractive peers. Notably, Peabody's stock has outperformed the S&P 500 over the past month with a return of 47.20% compared to the index's 0.96%, but its long-term performance over three and five years shows a stark contrast, with returns of 16.61% and 1797.58%, respectively, against the S&P 500's 81.19% and 91.29%.