Peabody Energy Corporation

NYSE:BTU Stock Report

Market Cap: US$3.2b

Peabody Energy Valuation

Is BTU undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of BTU when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: BTU ($26.61) is trading below our estimate of fair value ($64.86)

Significantly Below Fair Value: BTU is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for BTU?

Key metric: As BTU is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for BTU. This is calculated by dividing BTU's market cap by their current earnings.
What is BTU's PE Ratio?
PE Ratio6x
EarningsUS$535.90m
Market CapUS$3.23b

Price to Earnings Ratio vs Peers

How does BTU's PE Ratio compare to its peers?

The above table shows the PE ratio for BTU vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average10.3x
ARLP Alliance Resource Partners
7.9x-7.2%US$3.5b
CEIX CONSOL Energy
9x-1.0%US$3.7b
NRP Natural Resource Partners
7.9xn/aUS$1.4b
LEU Centrus Energy
16.3x-22.8%US$1.1b
BTU Peabody Energy
6x-7.7%US$3.2b

Price-To-Earnings vs Peers: BTU is good value based on its Price-To-Earnings Ratio (6x) compared to the peer average (10.3x).

Price to Earnings Ratio vs Industry

How does BTU's PE Ratio compare vs other companies in the US Oil and Gas Industry?

3 CompaniesPrice / EarningsEstimated GrowthMarket Cap
AXAS Abraxas Petroleum
0.09xn/aUS$10.27m
BYRO.F Byron Energy
0.03x-10.3%US$312.17k
USOP.Y U.S. Oil and Gas
n/an/aUS$6.00
No more companies available in this PE range
BTU 6.0xIndustry Avg. 11.7xNo. of Companies15PE0612182430+
3 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: BTU is good value based on its Price-To-Earnings Ratio (6x) compared to the US Oil and Gas industry average (11.8x).

Price to Earnings Ratio vs Fair Ratio

What is BTU's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

BTU PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio6x
Fair PE Ratio8.6x

Price-To-Earnings vs Fair Ratio: BTU is good value based on its Price-To-Earnings Ratio (6x) compared to the estimated Fair Price-To-Earnings Ratio (8.6x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst BTU forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$26.61
US$29.40
+10.5%
7.9%US$33.00US$26.00n/a5
Nov ’25US$26.48
US$29.40
+11.0%
7.9%US$33.00US$26.00n/a5
Oct ’25US$26.32
US$28.40
+7.9%
10.6%US$34.00US$25.00n/a5
Sep ’25US$23.41
US$27.80
+18.8%
9.2%US$32.00US$24.00n/a5
Aug ’25US$22.61
US$27.80
+23.0%
8.0%US$31.00US$24.00n/a5
Jul ’25US$23.77
US$27.60
+16.1%
8.1%US$31.00US$24.00n/a5
Jun ’25US$24.78
US$27.60
+11.4%
8.1%US$31.00US$24.00n/a5
May ’25US$21.44
US$28.40
+32.5%
7.9%US$32.00US$25.00n/a5
Apr ’25US$24.16
US$29.00
+20.0%
9.3%US$34.00US$26.00n/a5
Mar ’25US$25.03
US$28.80
+15.1%
10.2%US$34.00US$25.00n/a5
Feb ’25US$27.07
US$28.60
+5.7%
8.2%US$32.00US$25.00n/a5
Jan ’25US$24.32
US$28.60
+17.6%
8.2%US$32.00US$25.00n/a5
Dec ’24US$24.59
US$28.60
+16.3%
8.2%US$32.00US$25.00n/a5
Nov ’24US$23.33
US$28.60
+22.6%
8.2%US$32.00US$25.00US$26.485
Oct ’24US$25.99
US$28.00
+7.7%
8.1%US$32.00US$25.00US$26.325
Sep ’24US$22.34
US$26.00
+16.4%
6.4%US$28.00US$24.00US$23.415
Aug ’24US$22.27
US$26.00
+16.7%
6.4%US$28.00US$24.00US$22.615
Jul ’24US$21.66
US$26.60
+22.8%
9.1%US$30.00US$23.00US$23.775
Jun ’24US$18.31
US$30.60
+67.1%
5.7%US$34.00US$29.00US$24.785
May ’24US$23.63
US$29.75
+25.9%
1.5%US$30.00US$29.00US$21.444
Apr ’24US$25.60
US$33.75
+31.8%
9.7%US$39.00US$30.00US$24.164
Mar ’24US$27.86
US$34.00
+22.0%
8.8%US$39.00US$31.00US$25.034
Feb ’24US$27.68
US$34.25
+23.7%
10.0%US$39.00US$31.00US$27.074
Jan ’24US$26.42
US$33.75
+27.7%
8.2%US$37.00US$31.00US$24.324
Dec ’23US$31.29
US$33.75
+7.9%
8.2%US$37.00US$31.00US$24.594
Nov ’23US$24.00
US$29.50
+22.9%
13.0%US$33.00US$23.00US$23.334

Analyst Forecast: Target price is less than 20% higher than the current share price.

Discover undervalued companies

Civitas Resources

US$4.9b

An exploration and production company, focuses on the acquisition, development, and production of oil and natural gas in the Rocky Mountain region, primarily in the Field of the Denver-Julesburg Basin of Colorado.

CIVI

US$51.60

7D

0.9%

1Y

-24.7%

Cenovus Energy

CA$41.0b

Develops, produces, refines, transports, and markets crude oil, natural gas, and refined petroleum products in Canada and internationally.

CVE

CA$16.16

7D

3.7%

1Y

-7.8%

Hafnia

NOK 32.3b

Owns and operates oil product tankers in Bermuda.

HAFN

NOK 5.67

7D

8.4%

1Y

-16.1%