Is Avista Corp. overvalued or undervalued?

As of 7 May 2025, Avista Corp. has moved from a very attractive to an expensive valuation grade. The company is currently considered overvalued. Key ratios include a P/E ratio of 16, an EV to EBITDA of 9.79, and a Price to Book Value of 1.13. In comparison to peers, IDACORP, Inc. has a P/E of 20.31, indicating a more favorable valuation, while Portland General Electric Co. shows a P/E of 14.45, which is lower than Avista's. Despite a recent stock return of 13.32% over the past year, which outperformed the S&P 500's return of 10.26%, the valuation metrics suggest that Avista Corp. is not positioned for further growth at its current price level. The company’s ROE stands at 7.08%, which is relatively modest compared to industry standards, reinforcing the view that it is overvalued in the current market context.