Is Dril-Quip, Inc. overvalued or undervalued?

As of 11 March 2025, the valuation grade for Dril-Quip, Inc. has moved from attractive to very attractive, indicating a significant improvement in its valuation outlook. The company appears undervalued based on its current metrics, with a P/E ratio of 14, an EV to EBITDA of 8.24, and a PEG ratio of 0.13, which suggests strong growth potential relative to its price.
In comparison to peers, Dril-Quip's P/E ratio is lower than RPC, Inc. at 15.37 and significantly better than ProFrac Holding Corp., which has a negative P/E of -13.43. Additionally, Dril-Quip's EV to EBITDA ratio of 8.24 is more favorable than ProFrac's 6.25, indicating a more efficient valuation. Despite recent underperformance against the S&P 500 over the past year, the company's current valuation metrics suggest it is positioned for potential upside in the market.