Is Select Water Solutions, Inc. overvalued or undervalued?

As of 17 October 2025, Select Water Solutions, Inc. has moved from a fair to a very expensive valuation grade. The company appears overvalued given its P/E ratio of 22, which is higher than the peer average of 22.06 for Middlesex Water Co. and 20.41 for California Water Service Group. Additionally, the EV to EBITDA ratio stands at 5.66, significantly lower than the peer average of 14.36 for Essential Utilities, Inc., indicating a premium valuation relative to its earnings potential.
In comparison to its peers, Select Water Solutions, Inc. also shows a Price to Book Value of 1.34, which is higher than the industry average, suggesting that investors are paying more for each dollar of assets. Despite a strong dividend yield of 304.54%, the company's returns have been mixed; while it outperformed the S&P 500 over the past week and month, it has underperformed year-to-date and over the past year. This mixed performance reinforces the notion that the stock may be overvalued in the current market.