Is Peabody Energy Corp. overvalued or undervalued?

As of 24 October 2025, Peabody Energy Corp. has moved from a fair to an expensive valuation grade. The company appears overvalued based on its current financial metrics, 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, CONSOL Energy, Inc. has a significantly higher P/E ratio of 48.73, while Arch Resources, Inc. shows a P/E of 13.08, further indicating Peabody's relative overvaluation.
Despite a strong dividend yield of 182.81% and a YTD return of 38.49% compared to the S&P 500's 15.47%, the long-term performance reveals a concerning trend, with a 3-year return of 22.21% against the S&P 500's 78.85%. This suggests that while Peabody has had some short-term success, its valuation metrics and peer comparisons indicate that it is currently overvalued.