Is Alliant Energy Corp. overvalued or undervalued?

As of 16 June 2025, the valuation grade for Alliant Energy Corp. has moved from expensive to very expensive, indicating a significant shift in its market perception. The company is currently considered overvalued based on its key financial ratios. Notably, the P/E ratio stands at 19, while the industry average is lower at approximately 18.58. Additionally, the EV to EBITDA ratio is 25.93, which is considerably higher than the peer average of 14.45, and the PEG ratio is at 0.99, suggesting limited growth prospects relative to its valuation.
In comparison to its peers, Vistra Corp. is rated fair with a P/E of 17.23, while Ameren Corp. is deemed expensive with a P/E of 21.78. The high dividend yield of 320.80% may attract some investors, but the low ROCE of 5.70% and ROE of 11.73% raise concerns about the company's efficiency in generating returns. Recent performance shows that Alliant Energy Corp. has outperformed the S&P 500 over the past year with a return of 20.39% compared to 10.26%, but this does not negate the overall overvaluation indicated by the current metrics.