Is CMS Energy Corp. overvalued or undervalued?

As of 17 October 2025, the valuation grade for CMS Energy Corp. has moved from expensive to fair, indicating a more favorable assessment of its stock price. Based on the current metrics, the company appears fairly valued. The P/E ratio stands at 24, while the Price to Book Value is 2.51, and the EV to EBITDA ratio is 13.17, suggesting that the stock is reasonably priced compared to its earnings and book value.
In comparison to its peers, Public Service Enterprise Group, Inc. has a P/E of 20.07, and WEC Energy Group, Inc. has a P/E of 21.00, both of which are lower than CMS Energy's P/E, reinforcing the notion that CMS is fairly valued within its industry. Notably, CMS Energy's stock has underperformed against the S&P 500 over the longer term, with a 3-year return of 35.08% compared to the S&P 500's 81.19%, which may suggest room for improvement in its market performance.