Is Weatherford International plc overvalued or undervalued?

As of 3 October 2024, the valuation grade for Weatherford International plc moved from expensive to fair, indicating a more favorable assessment of its market position. The company appears to be fairly valued based on its P/E ratio of 7, which is significantly lower than its peer NOV, Inc. at 10.22, and its EV to EBITDA ratio of 3.33, compared to the industry average of 4.37. Additionally, the PEG ratio stands at 0.73, suggesting potential for growth relative to its valuation.
In comparison to its peers, Weatherford's valuation metrics are competitive, with Cactus, Inc. at a P/E of 15.00 and Liberty Energy, Inc. at 9.02, both indicating that Weatherford is positioned well within the industry. Despite a year-to-date return of -8.56% compared to the S&P 500's 12.22%, the company has shown remarkable long-term performance with a 5-year return of 2837.22%, outperforming the S&P 500's 96.61%. This long-term success reinforces the view that Weatherford is fairly valued at its current price level.