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 its peer NOV, Inc. at 10.22 and lower than Archrock, Inc. at 17.16. Additionally, Liberty's EV to EBITDA ratio stands at 2.85, which is more favorable compared to its peer Weatherford International plc at 4.37, but still suggests a premium valuation.
In terms of returns, Liberty Energy has underperformed relative to the S&P 500 over the year, with a return of -16.28% compared to the index's 14.08%. This trend reinforces the notion that the stock may be overvalued, particularly given its high dividend yield of 264.31% and ROCE of 12.91%, which, while attractive, may not justify the current price in light of its recent performance and peer comparisons.