Is Archrock, Inc. overvalued or undervalued?

As of 24 October 2025, Archrock, Inc. has moved from a fair to an expensive valuation grade. The company appears overvalued based on its current metrics, including 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 its peers, Archrock's P/E ratio is higher than NOV, Inc. at 10.22 and Weatherford International plc at 7.99, indicating a premium valuation relative to these companies.
Despite the overvaluation, Archrock has demonstrated strong performance with a 1-year return of 26.55%, significantly outperforming the S&P 500's return of 16.90% over the same period. However, the high valuation ratios suggest that investors may be paying too much for the stock at this time.