Is Target Hospitality Corp. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Target Hospitality Corp. has moved from attractive to expensive, indicating a shift towards overvaluation. The company appears overvalued based on key ratios, including a P/E ratio of 15, an EV to EBITDA of 4.83, and a Price to Book Value of 1.75. In comparison, peers such as Norwegian Cruise Line Holdings Ltd. have a P/E of 14.40 and an EV to EBITDA of 9.78, while Wyndham Hotels & Resorts, Inc. shows a P/E of 20.98 and an EV to EBITDA of 10.36, highlighting the relative expense of Target Hospitality.
Furthermore, the stock has underperformed against the S&P 500 across multiple periods, with a year-to-date return of -27.57% compared to the S&P 500's 13.30%. This underperformance reinforces the notion that Target Hospitality Corp. is currently overvalued in the market.