Is Solaris Oilfield Infrastructure, Inc. overvalued or undervalued?

As of 5 November 2024, the valuation grade for Solaris Oilfield Infrastructure, Inc. has moved from expensive to very expensive, indicating a significant deterioration in its valuation outlook. The company is currently considered overvalued. Key ratios reveal a P/E ratio of 54, a Price to Book Value of 5.61, and an EV to EBITDA of 20.28, all of which are substantially higher than industry norms.
In comparison with peers, Solaris Oilfield Infrastructure's P/E ratio of 52.87 is notably elevated, especially when contrasted with NETGEAR, Inc. at a P/E of -18.38, which is categorized as attractive. Additionally, Applied Digital Corp. is classified as risky with a P/E of -24.45. Despite a strong one-year return of 238.75%, which outperformed the S&P 500's 10.26%, the current valuation metrics suggest that the stock is not justified at its current price level.