Is Helmerich & Payne, Inc. overvalued or undervalued?

As of 6 August 2025, the valuation grade for Helmerich & Payne, Inc. has moved from attractive to risky, indicating a shift in perception regarding its investment potential. The company appears to be overvalued, particularly when considering its P/E ratio of 7, which is significantly lower than its peers such as Noble Corp. Plc at 12.39 and Valaris Ltd. at 13.22. Additionally, the EV to EBITDA ratio stands at 4.45, while its peer average is higher, suggesting that Helmerich & Payne may not be as favorably valued in comparison to its industry counterparts.
The company's Price to Book Value of 0.59 further emphasizes its overvaluation, as it is below the industry norm. Despite a relatively attractive dividend yield of 6.69%, the return metrics reveal a concerning trend, with a year-to-date return of -33.70% compared to the S&P 500's 12.22%, and a 3-year return of -50.30% against the S&P 500's 70.41%. This stark contrast reinforces the notion that Helmerich & Payne, Inc. is currently overvalued in the market.