Is Viper Energy, Inc. overvalued or undervalued?

As of 5 May 2025, Viper Energy, Inc. has moved from an attractive to a very attractive valuation grade, indicating a stronger outlook. The company appears undervalued based on its key ratios, which include a P/E ratio of 15, an EV to EBITDA of 11.49, and a ROE of 22.85%. In comparison to its peers, Viper's P/E ratio is notably lower than Blackstone Secured Lending Fund's 10.85 and Black Stone Minerals LP's 9.69, suggesting that Viper may be trading at a discount relative to similar companies in the oil sector.
Despite recent challenges, including a year-to-date return of -22.64% compared to the S&P 500's 12.22%, Viper Energy's long-term performance remains strong, with a 5-year return of 375.09% versus the S&P 500's 96.61%. This contrast highlights the potential for recovery and growth, reinforcing the view that Viper Energy is currently undervalued.