Is Warrior Met Coal, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Warrior Met Coal, Inc. has moved from fair to attractive, indicating a more favorable assessment of its value. However, the company appears to be overvalued based on its current P/E ratio of 25, which is significantly higher than its peers, such as CONSOL Energy, Inc. with a P/E of 48.73 and Alliance Resource Partners LP at 10.86. Additionally, the EV to EBITDA ratio stands at 9.05, which is also higher than the industry average.
In comparison to its peers, Warrior Met Coal, Inc. is classified as expensive, with a return on equity (ROE) of 5.01% and a return on capital employed (ROCE) of 4.96%. This suggests that while the company has shown strong returns over the long term, including a 328.08% return over the past five years, it has underperformed relative to the S&P 500's 91.29% return in the same period. Overall, despite the attractive valuation grade, the high valuation ratios indicate that Warrior Met Coal, Inc. is currently overvalued.