Is VAALCO Energy, Inc. overvalued or undervalued?

As of 13 March 2025, the valuation grade for VAALCO Energy, Inc. moved from attractive to very attractive, indicating a strong potential for growth. Based on the current metrics, the company appears undervalued, with a P/E ratio of 9, a Price to Book Value of 0.78, and an EV to EBITDA ratio of 1.31, all suggesting that the stock is trading at a discount relative to its earnings and asset values.
In comparison to its peers, VAALCO's P/E ratio of 10.74 is notably lower than that of TXO Partners LP at 90.13, while also being more favorable than Tellurian, Inc., which has a negative P/E. The company's dividend yield of 6.74% further enhances its attractiveness in the current market. Over the past year, VAALCO has underperformed against the S&P 500, with a return of -25.61% compared to the index's 17.14%, but it has shown a remarkable 305.66% return over the last five years, indicating strong long-term potential.