Is Forum Energy Technologies, Inc. overvalued or undervalued?

Jun 25 2025 09:03 AM IST
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As of August 3, 2023, Forum Energy Technologies, Inc. is considered overvalued and risky due to its negative P/E ratio of -256.51 and unfavorable financial metrics compared to peers, despite a strong year-to-date return of 24.02%.
As of 3 August 2023, Forum Energy Technologies, Inc. has moved from an attractive to a risky valuation grade, indicating a significant shift in its market perception. The company is currently considered overvalued, primarily due to its negative P/E ratio of -256.51, which reflects its loss-making status, alongside a Price to Book Value of 0.66 and an EV to EBITDA of 4.16.

In comparison to its peers, Forum's financial metrics are less favorable; for instance, Dril-Quip, Inc. holds a P/E ratio of 14.45 and an EV to EBITDA of 8.69, showcasing a more robust financial position. Similarly, RPC, Inc. has a P/E of 15.37 and an EV to EBITDA of 4.01, indicating a healthier valuation relative to Forum. Despite a strong YTD return of 24.02% compared to the S&P 500's 2.44%, the underlying financial ratios suggest that Forum Energy Technologies, Inc. is not aligned with its peers and may face challenges ahead.
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