Is KNOT Offshore Partners LP overvalued or undervalued?

As of 17 October 2025, the valuation grade for KNOT Offshore Partners LP has moved from very attractive to fair, indicating a shift in its perceived value. The company appears to be fairly valued at this time, with a P/E ratio of 5, a price-to-book value of 0.37, and an EV to EBITDA ratio of 5.41. In comparison to its peers, Genco Shipping & Trading Ltd. has a significantly higher P/E ratio of 46.00, while Teekay Corp. shows a lower P/E of 4.37, highlighting the mixed valuation landscape within the industry.
Despite the fair valuation, KNOT Offshore Partners LP has shown strong recent performance, with a year-to-date return of 62.39% compared to the S&P 500's 13.30%, although its longer-term performance has lagged significantly over three and five years. This suggests that while the stock may be fairly valued now, its past performance raises questions about its future growth potential.