Is Peabody Energy Corp. overvalued or undervalued?

As of 24 October 2025, Peabody Energy Corp. has moved from fair to expensive in its valuation grade. The company is currently considered overvalued based on its valuation metrics. The P/E ratio stands at 7, significantly lower than peers like CONSOL Energy, Inc. with a P/E of 48.73, and Arch Resources, Inc. at 13.08, indicating a discrepancy in perceived value. Additionally, Peabody's EV to EBITDA ratio of 2.54 is also lower compared to the industry average, while its Price to Book Value of 0.59 suggests that the market is undervaluing its assets relative to its peers.
In terms of recent performance, Peabody's stock has returned 18.66% over the past year, slightly underperforming the S&P 500's 16.90% return, but showing a remarkable 1747.13% return over the past five years, which is significantly higher than the S&P 500's 95.99%. This long-term performance may indicate potential resilience, yet the current valuation metrics suggest that the stock is not priced to reflect its actual worth in the market.