Is Tsakos Energy Navigation Ltd. overvalued or undervalued?

As of 27 March 2025, the valuation grade for Tsakos Energy Navigation Ltd. has moved from expensive to very attractive, indicating a significant improvement in its perceived value. The company appears undervalued based on its current metrics, particularly with a P/E ratio of 3, a Price to Book Value of 0.32, and an EV to EBITDA of 5.04. In comparison, peers such as Genco Shipping & Trading Ltd. and Nordic American Tankers Ltd. have much higher P/E ratios of 46.00 and 51.46, respectively, highlighting Tsakos Energy Navigation's relative undervaluation.
Despite a challenging one-year return of -8.63% compared to the S&P 500's 17.14%, the company has shown strong performance in the longer term, with a 5-year return of 163.34% versus the S&P 500's 96.61%. This suggests that while recent performance has lagged, the long-term growth potential remains robust, reinforcing the case for its undervaluation.