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 stock. Despite this positive change, the company appears to be overvalued based on its current metrics, particularly when compared to its peers. The P/E ratio stands at 25, while the EV to EBITDA ratio is 9.05, and the Price to Book Value is 1.25. In comparison, CONSOL Energy, Inc. has a P/E of 48.73 and an EV to EBITDA of 7.48, while Alliance Resource Partners LP shows a very attractive P/E of 10.86 and an EV to EBITDA of 5.29.
The stock has performed well against the S&P 500, with a year-to-date return of 20.28% compared to the index's 13.30%, and an impressive five-year return of 328.08% versus 91.29% for the S&P 500. However, the high valuation ratios suggest that Warrior Met Coal, Inc. may not be a compelling investment at its current price.