Is Dril-Quip, Inc. overvalued or undervalued?

As of 5 August 2025, the valuation grade for Dril-Quip, Inc. has moved from attractive to fair, indicating a shift in its perceived value. The company appears to be fairly valued at this time. Key valuation ratios include a P/E ratio of 14, an EV to EBITDA of 8.24, and a PEG ratio of 0.13, which suggests that the stock may be undervalued relative to its growth potential.
In comparison to peers, Dril-Quip, Inc. has a P/E of 11.75, while Weatherford International plc has a P/E of 7.99, and Cactus, Inc. has a P/E of 15.00. This places Dril-Quip in a competitive position within the industry, though not the lowest. Notably, the company's stock has outperformed the S&P 500 in the year-to-date period, returning 23.26% compared to the S&P 500's 12.22%, which reinforces the notion of its fair valuation amidst a challenging market.