Is Black Hills Corp. overvalued or undervalued?

As of 6 November 2024, the valuation grade for Black Hills Corp. has moved from fair to expensive. The company is currently considered overvalued based on its financial ratios and peer comparisons. Key ratios include a P/E ratio of 14, an EV to EBITDA of 10.73, and a dividend yield of 4.29%.
In comparison to peers, IDACORP, Inc. has a P/E ratio of 20.31 and an EV to EBITDA of 13.48, indicating that Black Hills Corp. is trading at a lower valuation despite its expensive classification. Similarly, Portland General Electric Co. shows a P/E of 14.45, further emphasizing that Black Hills Corp. does not offer a compelling valuation relative to its peers. Additionally, while Black Hills Corp. has seen a 1-year return of 7.34%, it still lags behind the S&P 500's 10.26% return, reinforcing the notion that the stock may not be an attractive investment at its current price.