Is ProPetro Holding Corp. overvalued or undervalued?

As of 30 October 2024, ProPetro Holding Corp. has moved from a valuation grade of very expensive to risky. The company is currently considered undervalued. Key ratios include a P/E ratio of 11, a Price to Book Value of 0.75, and an EV to EBITDA of 2.71, which suggest that the stock is trading at a discount relative to its earnings and asset values.
In comparison to its peers, ProFrac Holding Corp. has a P/E ratio of -13.43, while RPC, Inc. shows a fair valuation with a P/E of 15.37. This indicates that ProPetro is positioned more favorably in terms of valuation metrics compared to some of its competitors. Furthermore, the company's recent stock performance has lagged behind the S&P 500, particularly over the past year, where it has returned -27.16% compared to the index's 10.26%, reinforcing the notion that it may be undervalued in the current market environment.