Is Solaris Oilfield Infrastructure, Inc. overvalued or undervalued?

As of 23 July 2025, the valuation grade for Solaris Oilfield Infrastructure, Inc. moved from very expensive to expensive, indicating a slight improvement in perceived value. The company appears overvalued based on its current metrics, with a P/E ratio of 54, a Price to Book Value of 5.61, and an EV to EBITDA of 40.49, all significantly higher than its peers. For instance, Applied Digital Corp. has a P/E ratio of approximately -48.84, while NETGEAR, Inc. is valued as very attractive with a P/E of -80.48, highlighting the relative overvaluation of Solaris.
Despite this overvaluation, Solaris has demonstrated impressive stock performance, with a 1-year return of 186.63% compared to the S&P 500's 17.14%, and a striking 5-year return of 440.75% against the S&P's 96.61%. This strong performance may suggest investor confidence, but the high valuation ratios indicate that the stock may not be sustainable at these levels.