Is Teekay Tankers Ltd. overvalued or undervalued?

As of 7 July 2025, Teekay Tankers Ltd. has moved from an expensive to an attractive valuation grade. The company appears undervalued based on its current metrics, with a P/E ratio of 5, a Price to Book Value of 0.84, and an EV to EBITDA ratio of 2.55. In comparison, Golar LNG Ltd. has a P/E of 22.93 and Scorpio Tankers, Inc. has a P/E of 10.05, highlighting Teekay's relative attractiveness in the market.
Teekay Tankers also boasts a robust dividend yield of 388.39% and a strong ROCE of 21.19%, which further supports its undervalued status. While the company has experienced a slight decline of 1.99% over the past year, it has outperformed the S&P 500 significantly in the longer term, with a 350.74% return over the last five years compared to the S&P 500's 96.61%.