Is CMS Energy Corp. overvalued or undervalued?

As of 31 July 2025, the valuation grade for CMS Energy Corp. has moved from expensive to fair. Based on the current metrics, the company appears fairly valued. Key ratios include a P/E ratio of 24, an EV to EBITDA of 13.17, and a Price to Book Value of 2.51. In comparison to peers, Public Service Enterprise Group, Inc. has a P/E of 20.07, while WEC Energy Group, Inc. stands at 20.99, indicating that CMS Energy is priced slightly higher than some of its competitors.
In terms of recent performance, CMS Energy has underperformed relative to the S&P 500, with a year-to-date return of 5.30% compared to the index's 12.22%. Over the longer term, the company's 3-year return of 5.00% significantly lags behind the S&P 500's 70.41%, suggesting that while the stock may be fairly valued, it has not kept pace with broader market returns.