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 in its perceived value. Based on the current metrics, Ameren appears to be overvalued. The P/E ratio stands at 22, which is higher than the fair valuation peers like Xcel Energy at 20.15 and Public Service Enterprise Group at 20.07. Additionally, the EV to EBITDA ratio of 14.15 also suggests a premium compared to its peers, while the PEG ratio of 18.17 further emphasizes the high valuation relative to growth expectations.
In terms of performance, Ameren has outperformed the S&P 500 in the short term, with a year-to-date return of 18.38% compared to the S&P 500's 13.30%. However, over longer periods, such as the 3-year and 5-year returns, Ameren significantly lags behind the S&P 500, with returns of 35.79% and 28.07%, respectively, compared to 81.19% and 91.29% for the index. This discrepancy in long-term performance further supports the conclusion that Ameren is currently overvalued.