Is Summit Midstream Partners LP overvalued or undervalued?

As of 12 November 2024, the valuation grade for Summit Midstream Partners LP has moved from very attractive to risky. The company is currently considered overvalued given its financial metrics and peer comparisons. Key ratios include a Price to Book Value of 0.38 and an EV to EBITDA of 8.40, which suggest that while the company has a low book value, its earnings potential relative to enterprise value is concerning.
In comparison to its peers, Summit Midstream's valuation appears unfavorable; for instance, Northwest Natural Holding Co. has a P/E ratio of 13.57 and an EV to EBITDA of 6.94, indicating a more favorable valuation. Additionally, Clean Energy Fuels Corp. is also categorized as risky but has a significantly higher EV to EBITDA ratio of 28.17. The company's recent stock performance has been poor, with a year-to-date return of -33.91%, contrasting sharply with the S&P 500's return of 2.44% during the same period, reinforcing the notion that Summit Midstream is currently overvalued.