Is Nine Energy Service, Inc. overvalued or undervalued?

As of 9 February 2018, Nine Energy Service, Inc. has moved from a valuation grade of "does not qualify" to "risky." The company is currently considered overvalued, given its negative P/E ratio and a Price to Book Value of -0.30. Key ratios include an EV to EBITDA of 5.54 and a ROCE of 4.82%, which indicate that the company is struggling to generate returns on capital employed.
In comparison with peers, Dril-Quip, Inc. has a P/E ratio of 14.45 and an EV to EBITDA of 8.69, while ProPetro Holding Corp. shows a P/E of 12.36 and an EV to EBITDA of 3.03. These ratios highlight that Nine Energy Service, Inc. is lagging behind its competitors in terms of profitability and valuation metrics. The company's recent stock performance has been volatile, with a 1-month return of 124.65%, significantly outperforming the S&P 500's 3.83% return, although its longer-term performance remains concerning.