Is Atmos Energy Corp. overvalued or undervalued?

As of 30 June 2025, the valuation grade for Atmos Energy Corp. has moved from fair to very expensive, indicating that the company is overvalued. Key valuation ratios reveal a P/E ratio of 21, a Price to Book Value of 1.84, and an EV to EBITDA of 14.60, all suggesting a premium valuation compared to its peers.
In comparison, Targa Resources Corp. has a P/E of 17.82 and an EV to EBITDA of 11.06, while Cheniere Energy Partners LP boasts a P/E of 15.72 and an EV to EBITDA of 11.33, highlighting that Atmos Energy Corp. is trading at significantly higher multiples. Additionally, the stock has underperformed against the S&P 500 over the 3-year and 5-year periods, returning 42.48% and 76.57% respectively, compared to the S&P 500's 70.41% and 96.61%, reinforcing the notion that the stock may be overvalued.