Is Permian Resources Corp. overvalued or undervalued?

As of 7 May 2025, the valuation grade for Permian Resources Corp. has moved from fair to very attractive, indicating a significant improvement in its perceived value. The company is currently undervalued, with a P/E ratio of 8, an EV to EBIT of 7.93, and an EV to EBITDA of 3.92. In comparison, Chesapeake Energy Corp., which is rated risky, has a much higher P/E ratio of 31.99, while Coterra Energy, Inc. is considered expensive with a P/E of 15.78. Permian Resources Corp. stands out among its peers, particularly with its strong return on capital employed (ROCE) of 14.13% and return on equity (ROE) of 13.71%. The company’s current price of 14.10 is below its 52-week high of 16.95, suggesting potential for upside. Despite a recent decline in stock performance compared to the S&P 500, where it has returned -8.50% over the past year versus the index's 10.26%, the long-term outlook remains promising given its robust valuation metrics and peer comparisons.