Is Archrock, Inc. overvalued or undervalued?

As of 24 October 2025, the valuation grade for Archrock, Inc. has moved from fair to expensive, indicating that the stock is overvalued. This conclusion is supported by key ratios such as a P/E ratio of 22, a Price to Book Value of 3.60, and an EV to EBITDA of 11.47, which are significantly higher than those of its peers. For instance, NOV, Inc. has a P/E of 10.22 and Weatherford International plc has an EV to EBITDA of 4.37, both suggesting that Archrock's valuation is not justified relative to its competitors.
Despite the overvaluation, Archrock has demonstrated strong performance, with a 1-year return of 26.55%, outpacing the S&P 500's return of 16.90%. However, the company's high valuation ratios and the comparison with peers indicate that it may not be a prudent investment at this time.