Is Viper Energy, Inc. overvalued or undervalued?

As of 5 May 2025, the valuation grade for Viper Energy, Inc. has moved from fair to very attractive, indicating a significant improvement in its perceived value. The company is currently considered undervalued, with a P/E ratio of 15, which is notably lower than its peer Texas Pacific Land Corp., which has a P/E ratio of 54.52. Additionally, Viper's EV to EBITDA stands at 11.49, while its peer's ratio is substantially higher at 41.86, further supporting the undervaluation thesis.
With a ROCE of 19.62% and an ROE of 22.85%, Viper Energy demonstrates strong profitability metrics compared to its peers. The current price of $38.68 reflects a potential opportunity for investors, especially considering the recent stock performance relative to the S&P 500, where Viper has shown a 7.50% return over the past year, albeit underperforming the index's 10.26% return. Overall, Viper Energy, Inc. appears to be a compelling investment opportunity in the current market landscape.