Is Star Group LP overvalued or undervalued?

As of 15 January 2025, the valuation grade for Star Group LP has moved from very expensive to very attractive, indicating a significant shift in its perceived value. The company is currently considered undervalued based on its financial metrics. Key ratios include a P/E ratio of 6, an EV to EBITDA of 4.43, and a PEG ratio of 0.02, all of which suggest that the stock is trading at a discount relative to its earnings and growth potential.
In comparison to its peer, Calumet Specialty Products Partners LP, which has a P/E ratio of -3.70 and an EV to EBITDA of 70.10, Star Group LP stands out as a more favorable investment. The industry average P/E ratio is not provided, but Star Group's metrics indicate a strong position within its sector. Additionally, while Star Group LP has shown a 1-year return of 8.17%, it has underperformed compared to the S&P 500's 10.26% return, which may suggest room for improvement in market perception. Overall, Star Group LP appears to be a compelling investment opportunity at its current price of 11.92.