Is Ameren Corp. overvalued or undervalued?

As of 14 May 2025, the valuation grade for Ameren Corp. has moved from fair to expensive, indicating a shift towards overvaluation. The company is currently assessed as overvalued, particularly with a P/E ratio of 22, which is higher than the industry average of approximately 21.78. Additionally, the EV to EBITDA ratio stands at 14.15, further suggesting that the company's valuation metrics are elevated compared to its peers.
In comparison with notable peers, Eversource Energy has a significantly higher P/E ratio of 28.42, while FirstEnergy Corp. shows a lower P/E of 17.30, illustrating a range of valuations within the sector. Ameren's ROE of 9.81% and ROCE of 4.96% also reflect a less compelling return profile relative to its elevated valuation. Despite a strong one-year stock return of 36.67% compared to the S&P 500's 10.26%, the current valuation metrics suggest that Ameren Corp. is not a favorable investment at this time.