Is Atmos Energy Corp. overvalued or undervalued?

As of 21 November 2025, the valuation grade for Atmos Energy Corp. has moved from expensive to fair. The company appears fairly valued based on its current metrics. Key ratios include a P/E ratio of 21, an EV to EBITDA of 14.60, and a Price to Book Value of 1.84. 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, indicating that Atmos Energy is relatively on par with its peers.
In terms of recent performance, Atmos Energy has outperformed the S&P 500 year-to-date with a return of 25.77% compared to the S&P 500's 12.26%. However, over the longer term, its 3-year and 5-year returns of 51.27% and 83.09% respectively lag behind the S&P 500's returns of 67.17% and 85.61%.