Is Consolidated Edison, Inc. overvalued or undervalued?

As of 7 May 2025, the valuation grade for Consolidated Edison, Inc. has moved from very expensive to expensive. The company is currently considered overvalued based on its financial ratios and peer comparisons. The P/E ratio stands at 21, while the industry average is significantly higher, indicating a premium valuation. The EV to EBITDA ratio is 12.89, which is comparable to peers like The Southern Co. at 12.97, but still suggests that Consolidated Edison is not the most attractive option in its sector.
In comparison to its peers, Consolidated Edison has a PEG ratio of 5.02, which is notably higher than Duke Energy Corp.'s 3.18, further reinforcing the notion of overvaluation. Additionally, the company's ROE is at 7.95%, which, while decent, does not justify the current price level when juxtaposed with the market performance. Despite a year-to-date return of 13.36%, which outperformed the S&P 500's 2.44%, the overall valuation metrics suggest that Consolidated Edison, Inc. is not a compelling investment at this time.