Is CMS Energy Corp. overvalued or undervalued?

As of 7 May 2025, CMS Energy Corp. has moved from a valuation grade of very expensive to expensive. The company is currently considered overvalued. Key ratios include a P/E ratio of 24, an EV to EBITDA of 13.17, and a PEG ratio of 4.95, which indicates a high valuation relative to its growth prospects.
In comparison to its peers, CMS Energy Corp. has a P/E ratio higher than Ameren Corp. at 21.78 and lower than PPL Corp. at 24.36, while its EV to EBITDA is more favorable than Eversource Energy's 28.42 but less favorable than FirstEnergy Corp.'s 17.30. Notably, CMS Energy Corp. has shown a strong return of 17.33% over the past year, outperforming the S&P 500's return of 10.26%, which may reinforce the perception of its overvaluation.