Is Weatherford International plc overvalued or undervalued?

As of 17 October 2025, Weatherford International plc has moved from a very expensive to a fair valuation grade. The company appears to be undervalued, particularly when considering its P/E ratio of 7, which is significantly lower than peers like NOV, Inc. at 10.22 and Cactus, Inc. at 15.00. Additionally, Weatherford's EV to EBITDA ratio stands at 3.33, compared to the industry average of around 4.37, indicating a more favorable valuation relative to earnings before interest, taxes, depreciation, and amortization.
In terms of profitability, Weatherford boasts a robust ROCE of 46.03% and ROE of 39.87%, showcasing its efficiency in generating returns on capital and equity. Despite recent challenges reflected in its stock performance—where it has underperformed the S&P 500 with a year-to-date return of -13.04% compared to the index's 13.30%—the long-term outlook remains strong with a remarkable 5-year return of 2770.51%. This suggests that while the stock may be facing short-term pressures, its valuation metrics indicate that it is currently undervalued relative to its peers and historical performance.