Is Liberty Energy, Inc. overvalued or undervalued?

As of 17 October 2025, Liberty Energy, Inc. has moved from an attractive to an expensive valuation grade. The company is currently considered overvalued based on its valuation metrics, including a P/E ratio of 10, an EV to EBITDA of 2.85, and a Price to Book Value of 1.01. In comparison to peers, Liberty's P/E ratio is lower than NOV, Inc. at 10.22 and higher than Weatherford International plc at 7.99, indicating a mixed positioning within its industry.
Despite a strong dividend yield of 264.31% and a return on capital employed (ROCE) of 12.91%, the overall valuation suggests that the stock may not justify its current price level. Recent performance shows that while Liberty Energy outperformed the S&P 500 in the short term with a 27.14% return over the past week, it has underperformed on a year-to-date basis with a return of -22.98% compared to the S&P 500's 13.30%. This discrepancy reinforces the view that the stock is overvalued at its current price.