Is Summit Midstream Partners LP overvalued or undervalued?

As of 12 November 2024, the valuation grade for Summit Midstream Partners LP has moved from attractive to risky, indicating a significant shift in its perceived investment quality. The company appears to be overvalued given its current financial metrics, particularly with a Price to Book Value of 0.38 and an EV to EBITDA ratio of 8.40, which are concerning in the context of its negative earnings performance. Additionally, the company's ROE stands at -23.66%, further emphasizing its struggles in generating shareholder value.
In comparison to its peers, Summit Midstream's valuation ratios are notably weaker; for instance, Excelerate Energy, Inc. has a P/E ratio of 14.15 and an EV to EBITDA of 9.51, while Clean Energy Fuels Corp. shows an EV to EBITDA of 45.31, illustrating the varying valuations within the sector. Despite a strong 5-year return of 130.55%, the recent year-to-date performance of -38.43% starkly contrasts with the S&P 500's 12.22% return, reinforcing the notion that the stock may be overvalued at its current price.