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 increase in perceived overvaluation. The company appears overvalued based on its current metrics, with a P/E ratio of 7, an EV to EBITDA ratio of 6.38, and a Price to Book Value of 1.59. In comparison, peers such as Frontline Plc have a P/E of 21.44 and International Seaways, Inc. shows a P/E of 9.81, highlighting Scorpio's relatively low valuation ratios but still indicating a premium valuation.
The stock has shown mixed performance against the S&P 500, with a year-to-date return of 15.66%, slightly outperforming the index's 13.30%, but it lags over the longer term, particularly with a 1-year return of -13.24% compared to the S&P 500's 14.08%. Overall, the combination of high valuation ratios and underperformance in recent periods suggests that Scorpio Tankers, Inc. is overvalued in the current market environment.