Is Avista Corp. overvalued or undervalued?

As of 4 September 2025, the valuation grade for Avista Corp. has moved from expensive to very attractive. Based on the current metrics, the company appears to be undervalued. 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, which suggest that the stock is trading at a reasonable valuation compared to its peers. In comparison to its peers, Avista Corp. has a P/E ratio of 16.3950, which is lower than OGE Energy Corp. at 17.8334 and significantly lower than IDACORP, Inc. at 21.7115. Additionally, Portland General Electric Co. has a P/E of 15.6816, indicating that Avista is competitively positioned within the very attractive category. Over the past year, Avista Corp. has underperformed the S&P 500, returning -5.92% compared to the index's 17.14%, which may reflect market sentiment rather than fundamental value.