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. Based on the current metrics, the company appears fairly valued. The P/E ratio stands at 24, the EV to EBITDA ratio is 13.17, and the Price to Book Value is 2.51, indicating that the stock is reasonably priced compared to its earnings and book value.
In comparison with peers, Public Service Enterprise Group, Inc. has a P/E ratio of 20.07, while WEC Energy Group, Inc. shows a P/E of 21.00, suggesting that CMS Energy Corp. is in line with its industry competitors. Despite its fair valuation, CMS Energy Corp. has underperformed against the S&P 500 over multiple periods, particularly in the 3-year and 5-year returns, where it returned 35.08% and 14.55% respectively, compared to the S&P 500's 81.19% and 91.29%.