Is Riley Exploration Permian, Inc. overvalued or undervalued?

As of 13 June 2025, the valuation grade for Riley Exploration Permian, Inc. has moved from fair to attractive, indicating a positive shift in its perceived value. The company is currently considered undervalued based on its financial metrics. Key ratios include a P/E ratio of 5, an EV to EBITDA ratio of 3.08, and a PEG ratio of 0.57, all of which suggest that the stock is trading at a discount relative to its earnings growth potential.
In comparison to its peers, Riley Exploration's P/E ratio of 4.9840 is significantly lower than that of TXO Partners LP, which is rated very attractive with a P/E of 654.6577. Additionally, the company's EV to EBITDA ratio of 3.1835 is more favorable than Tellurian, Inc., which shows a negative P/E and EV to EBITDA ratio. Despite recent underperformance relative to the S&P 500, particularly over the year-to-date and one-year periods, the long-term growth of 262.50% over five years reinforces the potential for recovery and value realization in the stock.