Is VAALCO Energy, Inc. overvalued or undervalued?

As of 6 August 2024, the valuation grade for VAALCO Energy, Inc. has moved from attractive to very attractive, indicating a significant improvement in its perceived value. The company is currently undervalued, with a P/E ratio of 9, a Price to Book Value of 0.78, and an EV to EBITDA of 1.31, which are all favorable compared to industry norms.
In comparison to peers, VAALCO's P/E ratio is notably lower than that of Riley Exploration Permian, Inc., which stands at 4.98, and significantly more attractive than Tellurian, Inc., which has a negative P/E ratio. Additionally, VAALCO's dividend yield of 6.74% and a robust ROCE of 27.44% further support its undervaluation narrative. Despite recent stock performance lagging behind the S&P 500 over the past year, the company's strong fundamentals suggest that it offers a compelling investment opportunity at its current price of 3.71.