Is Nine Energy Service, Inc. overvalued or undervalued?

As of 9 February 2018, the valuation grade for Nine Energy Service, Inc. changed from does not qualify to risky, indicating a more cautious outlook. The company appears to be overvalued given its negative price-to-book value of -0.30, an EV to EBITDA ratio of 5.54, and a return on capital employed (ROCE) of only 4.82%. In comparison, ProPetro Holding Corp. has a P/E ratio of 8.97 and an EV to EBITDA of 2.31, while Oil States International, Inc. boasts a P/E of 18.43 and an EV to EBITDA of 7.50, suggesting that Nine Energy is lagging behind its peers.
Furthermore, the stock has significantly underperformed against the S&P 500, with a year-to-date return of -41.08% compared to the index's 12.22%. This stark contrast reinforces the notion that Nine Energy Service, Inc. is currently overvalued in the market.