Is Flotek Industries, Inc. overvalued or undervalued?

As of 5 August 2025, the valuation grade for Flotek Industries, Inc. has moved from fair to very expensive, indicating a significant shift in its market perception. The company appears overvalued based on its current metrics, with a P/E ratio of 35, a Price to Book Value of 4.27, and an EV to EBITDA of 22.61. In comparison, its peers such as ProFrac Holding Corp. and ProPetro Holding Corp. have much lower P/E ratios of -2.60 and 8.97, respectively, highlighting the relative overvaluation of Flotek.
Despite the high valuation, Flotek has demonstrated strong stock performance, with a 1-year return of 151.06%, significantly outperforming the S&P 500's return of 17.14% over the same period. However, the long-term outlook appears less favorable, as evidenced by a 5-year return of -18.06% compared to the S&P 500's 96.61%. This disparity suggests that while Flotek has recently gained traction, its current valuation may not be sustainable in the long run.