Is W&T Offshore, Inc. overvalued or undervalued?

As of 10 May 2024, the valuation grade for W&T Offshore, Inc. has moved from expensive to risky, indicating a deterioration in perceived value. The company appears to be overvalued given its negative valuation metrics, including a Price to Book Value of -3.05 and an EV to EBIT of -9.86. Additionally, the EV to EBITDA ratio stands at 4.00, which is relatively low compared to peers, suggesting that the company may not be generating sufficient earnings relative to its enterprise value.
In comparison to its peers, SilverBow Resources, Inc. has a fair valuation with an EV to EBITDA of 3.93, while Granite Ridge Resources, Inc. is considered very attractive with an EV to EBITDA of 3.04. This highlights that W&T Offshore, Inc. is lagging behind its competitors in terms of profitability and valuation metrics. Notably, the company's stock has underperformed significantly over longer periods, with a 3-year return of -72.55% compared to the S&P 500's 70.41%, reinforcing the notion that it is currently overvalued.