Is PHX Minerals, Inc. overvalued or undervalued?

As of 23 April 2025, the valuation grade for PHX Minerals, Inc. moved from fair to very expensive, indicating a significant shift in its perceived value. The company appears overvalued based on its current metrics, including a P/E ratio of 17, an EV to EBITDA of 11.68, and a Price to Book Value of 1.32. In comparison to peers, PHX Minerals has a higher P/E ratio than Tellurian, Inc. at -6.30 and a lower EV to EBITDA than TXO Partners LP at 8.89, suggesting it is less attractive relative to its competitors.
Despite a strong dividend yield of 88.33% and a PEG ratio of 0.08, which typically indicates growth potential, the overall valuation suggests that investors may be paying too much for the stock. Additionally, while PHX Minerals has outperformed the S&P 500 over the past year with a return of 36.36% compared to 17.14%, its longer-term performance over three and five years lags behind the benchmark, with returns of 42.62% and 61.71% respectively versus 70.41% and 96.61%. This further reinforces the notion that the stock may be overvalued at its current price.