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 deterioration in its financial outlook. The company appears to be overvalued, particularly given its P/E ratio is not applicable due to losses, while its Price to Book Value stands at 1.35, and the EV to EBITDA ratio is notably high at 155.07. Additionally, the ROE is concerningly low at -11.93%, reflecting inefficiencies in generating profit from equity.
In comparison to peers, ProFrac's valuation metrics are underwhelming, with a peer average EV to EBITDA of 4.44, highlighting its relative overvaluation. The stock has underperformed against the S&P 500, with a year-to-date return of -51.93% compared to the index's gain of 12.22%, reinforcing the notion that the stock is not a favorable investment at this time.