Is Riley Exploration Permian, Inc. overvalued or undervalued?

As of 6 August 2025, the valuation grade for Riley Exploration Permian, Inc. has moved from attractive to very attractive, indicating a strong improvement in its valuation outlook. The company appears to be undervalued, supported by a P/E ratio of 5, a Price to Book Value of 1.12, and an EV to EBITDA of 3.08. In comparison to peers, Riley Exploration's P/E ratio is significantly lower than that of TXO Partners LP, which stands at 90.13, and its EV to EBITDA is also more favorable than Tellurian, Inc., which has a negative valuation.
Despite a challenging year-to-date return of -12.5% compared to the S&P 500's 12.22%, the company's five-year return of 194.62% significantly outpaces the S&P 500's 96.61%, reinforcing the potential for recovery and growth. Overall, the metrics suggest that Riley Exploration is well-positioned for future performance, making it an attractive investment opportunity.