Is ProFrac Holding Corp. overvalued or undervalued?

As of 13 March 2024, the valuation grade for ProFrac Holding Corp. has moved from fair to risky, indicating a significant shift in its financial outlook. The company appears to be overvalued given its current metrics, particularly with a P/E ratio that is not applicable due to losses, a Price to Book Value of 1.35, and an EV to EBITDA of 5.66. Notably, the Return on Equity (ROE) stands at -11.93%, reflecting ongoing challenges in profitability.
In comparison with peers, RPC, Inc. has a fair valuation with a P/E ratio of 15.37 and an EV to EBITDA of 4.01, while Helix Energy Solutions Group, Inc. also maintains a fair valuation with a P/E of 12.67 and an EV to EBITDA of 3.52. These comparisons highlight ProFrac's relative weakness in financial performance. Additionally, the company's recent stock performance has been volatile, with a 1-week return of -15.94%, contrasting sharply with a modest gain of 6.31% year-to-date. Overall, the evidence suggests that ProFrac Holding Corp. is overvalued in its current state.