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 to be 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 shows a more attractive P/E of 15.72 and an EV to EBITDA of 11.33.
Despite a recent dip in stock performance, Atmos Energy Corp. has outperformed the S&P 500 year-to-date with a return of 25.34% compared to the S&P 500's 12.26%. However, over longer periods, the company's returns lag behind the benchmark, particularly in the 3-year and 5-year comparisons. This suggests that while the stock is currently fairly valued, it may face challenges in maintaining competitive returns in the long run.