Is Ranger Energy Services, Inc. overvalued or undervalued?

As of 31 July 2025, the valuation grade for Ranger Energy Services, Inc. has moved from very attractive to attractive, indicating a shift in perceived value. The company appears to be undervalued, given its P/E ratio of 12, which is lower than the peer average of approximately 12.47, and a PEG ratio of 0.51, suggesting strong growth potential relative to its price. Additionally, the EV to EBITDA ratio of 3.18 is significantly lower than that of its peers, particularly compared to Flotek Industries, Inc. at 16.31, indicating a more favorable valuation.
In comparison to its peers, Ranger Energy Services, Inc. shows a robust dividend yield of 142.49% and a return on capital employed (ROCE) of 14.03%, which are attractive metrics in the oil industry. While the stock has underperformed year-to-date with a return of -7.17% compared to the S&P 500's 12.22%, it has delivered a strong one-year return of 18.27%, slightly ahead of the S&P 500's 17.14%. This performance suggests that despite recent challenges, the company maintains a solid valuation profile relative to its peers.