Is Scorpio Tankers, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Scorpio Tankers, Inc. moved from expensive to very expensive, indicating a significant shift in its perceived value. The company appears overvalued based on its current metrics, with a P/E ratio of 7, a Price to Book Value of 1.59, and an EV to EBITDA ratio of 6.38. In comparison to its peers, Scorpio Tankers has a higher P/E ratio than Matson, Inc. at 6.73 and a lower EV to EBITDA ratio than Frontline Plc at 10.11, further emphasizing its expensive valuation status.
Despite its high dividend yield of 141.78% and a solid ROE of 23.34%, the overall valuation metrics suggest that investors may be paying a premium for the stock. The company's recent stock performance shows a 5-year return of 413.12%, significantly outperforming the S&P 500's 91.29% return in the same period, but it has lagged in the 1-year return with -13.24% compared to the S&P 500's 14.08%. This mixed performance reinforces the view that Scorpio Tankers, Inc. is currently overvalued.