Is ONE Gas, Inc. overvalued or undervalued?

As of 23 May 2025, the valuation grade for ONE Gas, Inc. has moved from very expensive to expensive, indicating a slight improvement in its perceived value. The company is currently considered overvalued. Key ratios include a P/E ratio of 18, an EV to EBITDA of 10.31, and a PEG ratio of 18.12, which suggest that the stock is trading at a premium compared to its earnings growth potential.
In comparison to its peers, ONE Gas, Inc. has a P/E ratio of 18, while Southwest Gas Holdings, Inc. is at 23.43 and New Jersey Resources Corp. is notably lower at 11.29, highlighting a significant disparity in valuation among similar companies. Additionally, the company's recent stock performance shows a 1-year return of 22.46%, outperforming the S&P 500's return of 10.26%, which may reinforce the overvaluation perspective as the market has reacted positively despite the high valuation metrics.