Is Weatherford International plc overvalued or undervalued?

As of 23 October 2024, Weatherford International plc's valuation grade has moved from expensive to fair, indicating a shift in market perception. The company is currently fairly valued. Key ratios include a P/E ratio of 7, a Price to Book Value of 2.60, and an EV to EBITDA of 3.33, which suggest that the stock is reasonably priced relative to its earnings and asset value.
In comparison to its peers, Weatherford's P/E ratio of 6.97 is significantly lower than TechnipFMC plc's P/E of 18.14, which is considered very expensive, while NOV, Inc. shows a fair valuation with a P/E of 8.99. Additionally, Weatherford's PEG ratio of 0.73 indicates potential for growth at a reasonable price, further supporting the fair valuation assessment. Despite recent underperformance relative to the S&P 500, with a year-to-date return of -34.30% compared to the index's 2.44%, the company's strong ROCE of 46.03% and ROE of 39.87% highlight its operational efficiency and profitability, reinforcing its fair valuation status.