Is Teekay Corp. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Teekay Corp. has moved from fair to attractive, indicating a positive shift in its perceived value. The company appears to be undervalued, particularly given its low P/E ratio of 3 and an EV to EBITDA ratio of 2.08, which are significantly lower than its peers. For comparison, Genco Shipping & Trading Ltd. has a P/E of 46.00, while Tsakos Energy Navigation Ltd. stands at 4.29, highlighting Teekay's relative undervaluation in the transport services industry.
Additionally, Teekay Corp. offers a compelling dividend yield of 12.70%, which further enhances its attractiveness to investors. Despite a slight decline in the past month, the company has outperformed the S&P 500 on a year-to-date basis, returning 21.50% compared to the index's 13.30%. This performance, combined with its favorable valuation metrics, supports the conclusion that Teekay Corp. is currently undervalued.