Is Brookfield Renewable Corp. overvalued or undervalued?

As of 2 May 2025, the valuation grade for Brookfield Renewable Corp. has moved from very attractive to risky, indicating a shift in the company's perceived value. The company is currently considered overvalued, with a P/E ratio of 62, significantly higher than its peers, such as Brookfield Infrastructure Partners LP at 14.29 and NextEra Energy Partners LP at 13.93. Additionally, the EV to EBITDA ratio stands at 8.46, which is in line with industry expectations but still suggests a premium valuation compared to its peers.
The company's ROCE is at 5.67% and ROE at 3.37%, both of which are relatively low, further supporting the overvaluation assessment. Despite a recent one-month stock return of 10.98%, which outperformed the S&P 500's 3.83%, the overall financial metrics and peer comparisons suggest that Brookfield Renewable Corp. is not positioned favorably in the current market environment.