Is Newpark Resources, Inc. overvalued or undervalued?

As of 10 June 2025, Newpark Resources, Inc. has moved from a fair valuation to an expensive one. The company appears to be overvalued based on its current metrics. The P/E ratio stands at 17, while the industry average P/E is notably higher at 17.68. Additionally, the EV to EBITDA ratio is 10.98, which is less favorable compared to peers like Diamond Offshore Drilling, Inc. with an EV to EBITDA of 8.70 and Nabors Industries Ltd. at 3.32.
In terms of performance, Newpark's ROCE is 16.15% and ROE is 15.11%, which are respectable figures, yet they do not justify the current valuation level. The PEG ratio of 0.18 suggests potential growth, but the overall valuation metrics indicate that the stock is overvalued relative to its peers and the industry. The company's stock has underperformed against the S&P 500 over the past year, which further reinforces the conclusion of overvaluation.