Is Ameren Corp. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Ameren Corp. has moved from very expensive to expensive, indicating a shift towards a less favorable assessment. Based on the current metrics, Ameren appears to be overvalued. The P/E ratio stands at 22, while the EV to EBITDA ratio is 14.15, and the PEG ratio is notably high at 18.17, suggesting that the stock may not be justifying its price relative to its earnings growth potential.
In comparison to its peers, Ameren's P/E ratio is higher than Xcel Energy, Inc. at 20.15 and Public Service Enterprise Group, Inc. at 20.07, both of which are rated as fairly valued. Additionally, Entergy Corp. is also categorized as expensive with a P/E of 27.67, further highlighting Ameren's relative valuation position. Over the past year, Ameren has outperformed the S&P 500 with a return of 19.49% compared to the index's 14.08%, but the long-term performance shows a stark contrast, with a 3-year return of 35.79% against the S&P 500's 81.19%.