Is Liberty Energy, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Liberty Energy, Inc. has moved from attractive to expensive, indicating a shift towards overvaluation. The company appears overvalued based on its P/E ratio of 10, which is higher than the peer average of approximately 9.02, and its EV to EBITDA ratio of 2.85, which is also above the peer average of around 2.68. Additionally, the Price to Book Value stands at 1.01, suggesting that the stock is trading at its book value, but this does not compensate for the elevated earnings multiples.
When compared to peers, NOV, Inc. has a P/E of 10.22, while Weatherford International plc shows a lower P/E of 7.99, reinforcing the perception that Liberty Energy is overvalued relative to its industry. Furthermore, while the stock has shown strong short-term returns, with a 1-week return of 27.14% compared to the S&P 500's 1.70%, its year-to-date return of -22.98% against the S&P 500's 13.30% highlights a concerning trend. Overall, Liberty Energy, Inc. is currently overvalued in the market.