Is KNOT Offshore Partners LP overvalued or undervalued?

As of 20 May 2025, the valuation grade for KNOT Offshore Partners LP has moved from very expensive to expensive. The company is currently considered overvalued. Key ratios include a P/E ratio of 5, an EV to EBITDA ratio of 5.41, and a Price to Book Value of 0.37. In comparison to peers, Capital Product Partners LP has a P/E ratio of 25.89 and an EV to EBITDA of 14.51, indicating a significant disparity in valuation metrics.
Despite a recent stock return of 22.57% year-to-date, which outperformed the S&P 500's 2.44%, the overall valuation suggests that KNOT Offshore Partners LP does not offer an attractive investment opportunity at its current price of 6.68. The company's financial ratios and peer comparisons reinforce the conclusion that it is overvalued in the current market context.