Is Cheniere Energy, Inc. overvalued or undervalued?

As of 8 May 2025, the valuation grade for Cheniere Energy, Inc. has moved from expensive to very expensive, indicating a significant increase in perceived overvaluation. The company is currently considered overvalued. Key ratios include a P/E ratio of 17, a Price to Book Value of 10.60, and an EV to EBITDA of 12.23, all of which suggest that the stock is trading at a premium compared to its earnings and assets.
In comparison to its peers, Cheniere Energy's P/E ratio of 16.33 is lower than The Williams Cos., Inc. at 27.64 but higher than Enterprise Products Partners LP, which has a P/E of 12.27, indicating a relative overvaluation. The PEG ratio of 0.01 further emphasizes this point, as it suggests that the stock is priced significantly higher than its growth potential. Despite a strong performance with a 1Y return of 41.00% compared to the S&P 500's 10.26%, the current valuation metrics indicate that Cheniere Energy, Inc. is not a compelling investment at this time.