Is Archrock, Inc. overvalued or undervalued?

As of 4 August 2025, the valuation grade for Archrock, Inc. has moved from very expensive to expensive. The company appears to be overvalued based on its current metrics. Key ratios include a P/E ratio of 22, a Price to Book Value of 3.60, and an EV to EBITDA of 11.47. In comparison to peers, NOV, Inc. has a P/E of 10.22 and Weatherford International plc has a P/E of 7.99, indicating that Archrock is trading at a premium relative to its industry counterparts.
Despite a strong historical performance with a 3-year return of 242.58% compared to the S&P 500's 70.41%, recent returns have been less favorable, with a year-to-date return of -1.73% against the S&P 500's 12.22%. This suggests that while Archrock has delivered impressive long-term growth, its current valuation may not be justified given the recent performance trends.