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. The company appears to be overvalued based on its current metrics, with a P/E ratio of 62, a price-to-book value of 2.08, and an EV to EBITDA of 8.46. In comparison, Brookfield Infrastructure Partners LP, which is rated very attractive, has a P/E of 12.40 and an EV to EBITDA of 7.92, highlighting a significant disparity in valuation.
The company's return performance has been mixed; while it outperformed the S&P 500 year-to-date with a return of 25.23% compared to 12.22%, it has lagged behind over longer periods, particularly with a 3-year return of -13.90% versus the S&P's 70.41%. This suggests that despite recent positive momentum, the overall valuation and performance relative to peers indicate that Brookfield Renewable Corp. is currently overvalued.