Is Mammoth Energy Services, Inc. overvalued or undervalued?

As of 1 March 2024, the valuation grade for Mammoth Energy Services, Inc. has moved from fair to risky, indicating a significant deterioration in its financial outlook. The company is currently considered overvalued, primarily due to its negative earnings performance reflected in a P/E ratio that is not applicable as it is loss-making. Key ratios include a price-to-book value of 0.51, an EV to EBIT of -0.46, and an EV to EBITDA of -0.57, all suggesting substantial financial distress.
In comparison to its peers, Mammoth's valuation appears unfavorable. For instance, ProFrac Holding Corp. has a P/E ratio of -13.43, while Dril-Quip, Inc. stands out as very attractive with a P/E of 14.45 and an EV to EBITDA of 8.69. The stark contrast in these ratios highlights the challenges Mammoth faces in the current market. Additionally, while Mammoth has shown a 23.33% return over the past month, it still lags behind the S&P 500's 3.83% return during the same period, further reinforcing the notion of its overvaluation.