Is Talos Energy, Inc. overvalued or undervalued?

As of 6 August 2025, Talos Energy, Inc. has moved from a fair to a risky valuation grade. The company appears to be overvalued, particularly given its P/E ratio is not applicable due to losses, while its Price to Book Value stands at 0.52, indicating potential undervaluation relative to its assets. Additionally, the EV to EBITDA ratio is 1.84, which is low compared to peers, but the EV to EBIT ratio of 18.18 suggests high leverage and operational inefficiency.
In comparison to its peers, Antero Resources Corp. has a P/E of 17.26 and an EV to EBITDA of 8.49, while Magnolia Oil & Gas Corp. shows a P/E of 14.28 and an EV to EBITDA of 6.08, both indicating stronger valuations. Talos Energy's stock has underperformed against the S&P 500 over various periods, notably with a 1-year return of -16.06% compared to the S&P 500's 17.14%, reinforcing the notion that the stock is currently overvalued.