Is Ring Energy, Inc. overvalued or undervalued?

As of 14 March 2025, the valuation grade for Ring Energy, Inc. has moved from fair to attractive, indicating a positive shift in its perceived value. The company is currently considered undervalued, with a P/E ratio of 3, a price to book value of 0.18, and an EV to EBITDA of 2.86. These metrics suggest that the stock is trading at a significant discount compared to its earnings and asset values.
In comparison to its peers, Ring Energy stands out with a lower P/E ratio than Riley Exploration Permian, Inc., which has a P/E of 4.98, and is also more attractive than Tellurian, Inc., which is rated as risky with a P/E of -6.30. The company's recent stock performance has lagged behind the S&P 500, with a year-to-date return of -42.24% compared to the S&P 500's 2.44%. Overall, the combination of low valuation ratios and a favorable grade change supports the conclusion that Ring Energy, Inc. is undervalued in the current market.