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 to be overvalued based on its current metrics, particularly with a P/E ratio of 7, which is significantly lower than its peers, such as 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, which is also less favorable compared to its competitors, indicating a potential overvaluation.
The company's Price to Book Value is 0.59, suggesting that its market price is below its book value, but this is overshadowed by the overall expensive valuation grade. Notably, Peabody's recent stock performance shows a YTD return of 38.49%, which outperformed the S&P 500's return of 15.47% during the same period, but this strong performance does not align with its current valuation metrics. Overall, Peabody Energy Corp. is considered overvalued in the current market context.