Is Teekay Tankers Ltd. overvalued or undervalued?

As of 19 September 2025, Teekay Tankers Ltd. has moved from a fair to attractive valuation grade, indicating a favorable shift in its market position. The company appears undervalued based on its P/E ratio of 5, significantly lower than the peer average of 6.32 for similar companies, and an EV to EBITDA ratio of 2.55, which is also competitive compared to peers like Scorpio Tankers, Inc. at 9.19. Additionally, the Price to Book Value stands at 0.84, suggesting that the stock is trading below its book value, further supporting the undervaluation thesis.
In terms of peer comparison, Golar LNG Ltd. has a P/E ratio of 22.93, while International Seaways, Inc. shows a more attractive valuation with a P/E of 9.81, highlighting Teekay's relative value. The company's impressive dividend yield of 388.39% and a ROCE of 21.19% further reinforce its attractiveness. Over the past five years, Teekay has returned 340.36%, outperforming the S&P 500's 100.77%, which underscores its strong performance relative to the broader market.